Trade Liberalization, Cointegration, Vector Error Correction Model, De-Novo hypothesis


This paper attempts to investigate whether the government of Bangladesh is promoting industrial exports and investigates the effects of industrial export on growth; with a notion, if de novo hypothesis holds. The paper attempts to check the effects of trade liberalization on growth applying methods of cointegration, and vector error correction model. The study concludes that trade openness is needed to be contained in a controllable level and suggests policymakers to regulate trade openness to gradually diminish the import trend.

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