The Impact of Exchange Rate on Bangladesh’s Export: A Cointegration Approach

Main Article Content

Takrima Sayeda

Abstract

The purpose of the paper is to see if there is any relationship exist between free floating exchange rate and export performance of Bangladesh. It inspects the monthly data of exchange rate and export value for the time period between year 2000 and 2017. It utilized the Johansen [1] cointegration approach to identify the extent of long run and short run relationship between them. The study could not establish neither any long term trend nor any short term dynamics between the variables. Respective variables are significantly related to their own immediate past values. Distant past values do not have any implications. This study suggests that short run macroeconomic policy would be beneficial to influence the foreign exchange market and eventually the performance of export of Bangladesh.

Keywords:
Exchange rate, export, cointegration approach, Bangladesh.

Article Details

How to Cite
Sayeda, T. (2020). The Impact of Exchange Rate on Bangladesh’s Export: A Cointegration Approach. Journal of Economics, Management and Trade, 26(7), 22-30. https://doi.org/10.9734/jemt/2020/v26i730271
Section
Original Research Article

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