The Impact of Macroeconomic Factors on Exports Earnings in Bangladesh: 1971-2018

M.S. Islam¹ , M. Sahajalal² , A. Alim³

Section:Research Paper, Product Type: Journal-Paper
Vol.5 , Issue.8 , pp.62-65, Aug-2019

Online published on Aug 31, 2019

Copyright © M.S. Islam, M. Sahajalal, A. Alim . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
The purpose of this research is to find out the relationship between export earnings with the macroeconomic factors in Bangladesh for the year of 1971-2018. For achieving paper goals, we have used the exchange rate, inflation rate, interest rate as an independent variable and total export earnings as dependent variables. Data have been collected from different sources like the World Economic indicator, Bangladesh Bureau of Statistics and the central bank of Bangladesh (Bangladesh Bank). For analysis of our macroeconomic data, we have used Eviews 9. To finding out an objective of our paper we have been using different types of test. Augmented Dickey-Fuller (Unit root test) used to shows whether our data are stationary or not. ADF result shows that data is stationary. Johansen tested for cointegration the test helps to find out the cointegration between all those variables. We also used ECM, CUSUM test and CUSUM square test. Our analysis shows that there was a positive relationship between export earnings, real exchange rate, inflation rate, and interest rate. Although there is a strong relationship between the variables, CUSUM and CUSUM square test shows that our model is not stable. Our paper suggests that if the real exchange rate, inflation rate, and interest rate go up then also the export earrings go up for the perspective of the Bangladesh economy.

Key-Words / Index Term :
Export earnings, Inflation rate, Exchange rate, Interest rate and Bangladesh Economy

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