Trade liberalization and import-demand behavior in Bangladesh, 1974–2008

Akhand Hossain ()

Journal of Developing Areas, 2013, vol. 47, issue 2, 387-416

Abstract: From the early 1980s onwards, Bangladesh has undertaken a series of trade-liberalization measures. In combination with the steady rise in real income over the past two-and a half decades, these measures have raised the country’s import-orientation and brought structural change in the composition of imports in favor of consumer goods and materials for consumption. This paper investigates import-demand behavior in Bangladesh within the Autoregressive-Distributed-Lag (ARDL) modeling framework using annual data for the period 1974–2008. The empirical results suggest the presence of a well-behaved import-demand function, in the senses that (1) Bangladesh’s imports are income-elastic and price-inelastic and (2) there is no evidence of instability in the Bangladesh import-demand relationship.

Keywords: Trade Liberalization; Import Trade; Cointegration and Error-Correlation; Structural Stability; Bangladesh (search for similar items in EconPapers)
JEL-codes: C32 C50 F10 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:jda:journl:vol.47:year:2013:issue2:pp:387-416

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