The export-income relationship and trade liberalisation in Bangladesh

摘要

Bangladesh pursued a policy of import-substituting industrialisation until 1990 when trade was liberalised and exports promoted. This paper examines the impact of trade liberalisation on the export-income relationship using cointegration methods. Results show that trade liberalisation increased export growth but had no effect on the structure of the long-run export-income relationship. Impulse responses support the export-led growth hypothesis and Bangladesh should complete its trade liberalisation agenda to promote economic growth.