The Export Supply Model of Bangladesh: An Application of Cointegration and Vector Error Correction Approaches
The broad objective of this study is to empirically estimate the export supply model of Bangladesh. The techniques of cointegration, Engle-Granger causality and Vector Error Correction are applied to estimate the export supply model. The econometric analysis is done by using the time series data of...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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EconJournals
2011-10-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | http://mail.econjournals.com/index.php/ijefi/article/view/31 |
| _version_ | 1797920947348439040 |
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| author | Mahmudul Mannan Toy MD. Moniruzzaman A. B. M. Rashedul Hassan |
| author_facet | Mahmudul Mannan Toy MD. Moniruzzaman A. B. M. Rashedul Hassan |
| author_sort | Mahmudul Mannan Toy |
| collection | DOAJ |
| description |
The broad objective of this study is to empirically estimate the export supply model of Bangladesh. The techniques of cointegration, Engle-Granger causality and Vector Error Correction are applied to estimate the export supply model. The econometric analysis is done by using the time series data of the variables of interest which is collected from various secondary sources. The study has empirically tested the hypothesis, long run relationship and casualty between variables of the model. The cointegration analysis shows that all the variables of the study are co-integrated at their first differences meaning that there exists long run relationship among the variables. The VECM estimation shows the dynamics of variables in the export supply function and the short run and long run elasticities of export supply with respect to each independent variable. The error correction term is found negative which indicates that any short run disequilibrium will be turned into equilibrium in the long run.
Keywords: Engine of Growth; Cointegration; Granger Causality; VECM, VAR; Impulse Response.
JEL Classifications: F4
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| first_indexed | 2024-04-10T14:09:01Z |
| format | Article |
| id | doaj.art-a7c7d03023544a7592b198f0b582cde2 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T14:09:01Z |
| publishDate | 2011-10-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-a7c7d03023544a7592b198f0b582cde22023-02-15T16:09:51ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382011-10-0114The Export Supply Model of Bangladesh: An Application of Cointegration and Vector Error Correction ApproachesMahmudul Mannan Toy0MD. Moniruzzaman1A. B. M. Rashedul Hassan2Shanto-Mariam University of Creative TechnologyInstitute of Bangladesh Studies Rajshahi UniversityAtish-Dipankar University of Science and Technology The broad objective of this study is to empirically estimate the export supply model of Bangladesh. The techniques of cointegration, Engle-Granger causality and Vector Error Correction are applied to estimate the export supply model. The econometric analysis is done by using the time series data of the variables of interest which is collected from various secondary sources. The study has empirically tested the hypothesis, long run relationship and casualty between variables of the model. The cointegration analysis shows that all the variables of the study are co-integrated at their first differences meaning that there exists long run relationship among the variables. The VECM estimation shows the dynamics of variables in the export supply function and the short run and long run elasticities of export supply with respect to each independent variable. The error correction term is found negative which indicates that any short run disequilibrium will be turned into equilibrium in the long run. Keywords: Engine of Growth; Cointegration; Granger Causality; VECM, VAR; Impulse Response. JEL Classifications: F4 http://mail.econjournals.com/index.php/ijefi/article/view/31 |
| spellingShingle | Mahmudul Mannan Toy MD. Moniruzzaman A. B. M. Rashedul Hassan The Export Supply Model of Bangladesh: An Application of Cointegration and Vector Error Correction Approaches International Journal of Economics and Financial Issues |
| title | The Export Supply Model of Bangladesh: An Application of Cointegration and Vector Error Correction Approaches |
| title_full | The Export Supply Model of Bangladesh: An Application of Cointegration and Vector Error Correction Approaches |
| title_fullStr | The Export Supply Model of Bangladesh: An Application of Cointegration and Vector Error Correction Approaches |
| title_full_unstemmed | The Export Supply Model of Bangladesh: An Application of Cointegration and Vector Error Correction Approaches |
| title_short | The Export Supply Model of Bangladesh: An Application of Cointegration and Vector Error Correction Approaches |
| title_sort | export supply model of bangladesh an application of cointegration and vector error correction approaches |
| url | http://mail.econjournals.com/index.php/ijefi/article/view/31 |
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