Abstract
This study aims to examine the empirical interrelationship between capital goods and machinery imports and manufacturing exports of Bangladesh over the period of January 2000 to December 2017. To investigate the issue, we applied ARDL Bounds Testing approach, Impulse Response Function (IRF) and bi-variate Granger Causality techniques. The estimated results indicate that capital goods and machinery imports have significant impact on the manufacturing exports in both short and long runs. The IRF technique shows that shock created by the capital goods and machinery imports has impact on the manufacturing exports up to 25 months. Further, Granger Causality analysis indicates a uni-directional causality running from the level of capital goods and machinery imports to manufacturing export level. Precisely, the results of this study confirm that the imported capital goods and machinery are a source of comparative advantage and help to increase the manufacturing exports of Bangladesh.
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Article Details
- Year: 2023
- Volume: 44
- Issue: 4
- Pages: 191 - 220
- Accepted: 01.12.2023
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DOI:
https://doi.org/10.5281/zenodo.16919488 -
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How to Cite?
Mohammad Abul Kashem, Hafiza Sharmin (2023). Does capital machinery import promote export in Bangladesh?. Journal of Economic Cooperation and Development, 44(4), 191-220. https://doi.org/10.5281/zenodo.16919488
