Foreign Policy Uncertainty and Export Dynamics: Insights from a Developing Economy

S. M. Woahid Murad (), Aklima Akter, Arifur Rahman () and Mohammad Iqbal Hossain ()
Additional contact information
S. M. Woahid Murad: Curtin University, School of Accounting, Economics and Finance
Aklima Akter: Noakhali Science and Technology University, Department of Economics
Arifur Rahman: Lanzhou University, School of Economics
Mohammad Iqbal Hossain: Noakhali Science and Technology University, Department of Economics

Journal of Business Cycle Research, 2025, vol. 21, issue 1, No 3, 49-69

Abstract: Abstract This study investigates the impact of trading partners’ economic policy uncertainty (EPU) on Bangladesh’s exports. Using monthly bilateral data for 17 major partners from 2001 to 2020 and a newspaper-based EPU index, we estimate linear and nonlinear panel ARDL models with common correlated effects. Results indicate a positive long-run effect of foreign EPU on exports, reflecting Bangladesh’s competitiveness in low-cost consumer goods. The relationship is asymmetric in the long run but insignificant in the short run. Causality tests confirm bidirectional linkages between exports and EPU. Findings underscore the importance of monitoring global policy uncertainty to sustain export resilience and growth.

Keywords: Economic policy uncertainty; Export; Bangladesh (search for similar items in EconPapers)
JEL-codes: C23 F14 F41 F42 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s41549-025-00110-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jbuscr:v:21:y:2025:i:1:d:10.1007_s41549-025-00110-5

Ordering information: This journal article can be ordered from
http://www.springer. ... nomics/journal/41549

DOI: 10.1007/s41549-025-00110-5

Access Statistics for this article

Journal of Business Cycle Research is currently edited by Michael Graff

More articles in Journal of Business Cycle Research from Springer, Centre for International Research on Economic Tendency Surveys (CIRET)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().