Exports, Imports and Growth Nexus in Bangladesh: Facts From Causality and Cointegration Analysis

Exports and imports play an important role in economic development and growth. accordingly the importance of these variables is a field of research. This paper uses a theoretically consistent technique to investigate legitimacy of the export led growth (ELG)  hypothesis for Bangladesh considering the variable import as well. The paper investigates the Granger-causality test among exports, imports, and economic growth in Bangladesh over the period 1980-2011 as well as the modern cointegration test also. The causality test finds one way causality running from export to GDP indicating the victory of ELG hypothesis for Bangladesh.