The Effect of the Pandemic on the RMG Export of Bangladesh: Exploring the Economic Channels of Transmission
This study aims to empirically analyse the potential long-run and short-run effects of the COVID-19 pandemic on the ready-made garments (RMG) export growth of Bangladesh. We distinguish two transmission channels: credit growth and degree of openness to trade, through which the pandemic could affect...
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| Format: | Article |
| Language: | English |
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University of Primorska
2023-09-01
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| Series: | Managing Global Transitions |
| Online Access: | https://ojs.upr.si/index.php/fm/article/view/138 |
| _version_ | 1827806493873799168 |
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| author | Banna Banik |
| author_facet | Banna Banik |
| author_sort | Banna Banik |
| collection | DOAJ |
| description |
This study aims to empirically analyse the potential long-run and short-run effects of the COVID-19 pandemic on the ready-made garments (RMG) export growth of Bangladesh. We distinguish two transmission channels: credit growth and degree of openness to trade, through which the pandemic could affect the RMG export, using monthly time series data from June 2009 to August 2020. We employ a bounds test approach to the autoregressive distributed lag (ARDL) cointegration method. The bounds test specifies long-run and short-run relationships between credit growth, openness, and RMG exports. We found that the pandemic has a significant negative effect in the short run but a positive impact on export through these transmission channels in the long run. Thus, more credit support to this sector and opening up the economy for international trade is essential for the total recovery of the RMG export.
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| first_indexed | 2024-03-11T21:41:56Z |
| format | Article |
| id | doaj.art-a2eeac0405b94db4b5dbc49cee0d438d |
| institution | Directory Open Access Journal |
| issn | 1854-6935 |
| language | English |
| last_indexed | 2024-03-11T21:41:56Z |
| publishDate | 2023-09-01 |
| publisher | University of Primorska |
| record_format | Article |
| series | Managing Global Transitions |
| spelling | doaj.art-a2eeac0405b94db4b5dbc49cee0d438d2023-09-26T13:15:06ZengUniversity of PrimorskaManaging Global Transitions1854-69352023-09-0121310.26493/1854-6935.21.201-221The Effect of the Pandemic on the RMG Export of Bangladesh: Exploring the Economic Channels of TransmissionBanna Banik0Bangladesh Bank This study aims to empirically analyse the potential long-run and short-run effects of the COVID-19 pandemic on the ready-made garments (RMG) export growth of Bangladesh. We distinguish two transmission channels: credit growth and degree of openness to trade, through which the pandemic could affect the RMG export, using monthly time series data from June 2009 to August 2020. We employ a bounds test approach to the autoregressive distributed lag (ARDL) cointegration method. The bounds test specifies long-run and short-run relationships between credit growth, openness, and RMG exports. We found that the pandemic has a significant negative effect in the short run but a positive impact on export through these transmission channels in the long run. Thus, more credit support to this sector and opening up the economy for international trade is essential for the total recovery of the RMG export. https://ojs.upr.si/index.php/fm/article/view/138 |
| spellingShingle | Banna Banik The Effect of the Pandemic on the RMG Export of Bangladesh: Exploring the Economic Channels of Transmission Managing Global Transitions |
| title | The Effect of the Pandemic on the RMG Export of Bangladesh: Exploring the Economic Channels of Transmission |
| title_full | The Effect of the Pandemic on the RMG Export of Bangladesh: Exploring the Economic Channels of Transmission |
| title_fullStr | The Effect of the Pandemic on the RMG Export of Bangladesh: Exploring the Economic Channels of Transmission |
| title_full_unstemmed | The Effect of the Pandemic on the RMG Export of Bangladesh: Exploring the Economic Channels of Transmission |
| title_short | The Effect of the Pandemic on the RMG Export of Bangladesh: Exploring the Economic Channels of Transmission |
| title_sort | effect of the pandemic on the rmg export of bangladesh exploring the economic channels of transmission |
| url | https://ojs.upr.si/index.php/fm/article/view/138 |
| work_keys_str_mv | AT bannabanik theeffectofthepandemiconthermgexportofbangladeshexploringtheeconomicchannelsoftransmission AT bannabanik effectofthepandemiconthermgexportofbangladeshexploringtheeconomicchannelsoftransmission |