Does Export affect the Economic Growth? : An empirical investigation for Bangladesh

Abstract

To reveal the answer of the central debate as economic performance is export-led, this paper examines time series evidence to investigate the response of export to the economic growth of Bangladesh during 1980 to 2018. During this period, Bangladesh changed its economic philosophy to expand export market focusing both traditional and manufacturing product. Using Granger Causality test, the study finds a unidirectional causal effect from export and terms of trade to economic growth, while there is no causal effect of economic growth to export and terms and trade. Also, this empirical study reveals a bidirectional causal relationship between export and terms of trade.

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