The Determinants of Bangladesh’s Imports: A Gravity Model Analysis Under Panel Data

24 Pages Posted: 12 Oct 2009

Abstract

This paper applies the generalized gravity model to analyze the Bangladesh’s import trade with its major trading partners using the panel data estimation technique. Our results show that Bangladesh’s imports are determined by the inflation rates, per capita income differentials and openness of the countries involved in trade. Also the country’s imports are found to be influenced to a great extent by the border between India and Bangladesh. The country specific effects show that the influence of neighbouring countries is more than that of distant countries on Bangladesh’s imports.

Keywords: Gravity Model, Panel Data, Bangladesh’s Imports

JEL Classification: C23, F10, F14

Suggested Citation

Rahman, Mohammad Mafizur, The Determinants of Bangladesh’s Imports: A Gravity Model Analysis Under Panel Data. Australian Conference of Economists 2009 Paper. Available at SSRN: https://ssrn.com/abstract=1485201 or http://dx.doi.org/10.2139/ssrn.1485201

Mohammad Mafizur Rahman (Contact Author)

University of Southern Queensland ( email )

Toowoomba 4350, Queensland
Australia

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