Relationship Between Trade Openness & Economic Growth Of Bangladesh: Time Series Analysis

Abstract

Does Trade Openness really be a benefit to Bangladesh? Is this relationship positive or negative? These are the type of questions that can never be answered conclusively. However, there is no in attempting to investigate the matter. This paper attempts to do that exactly by examining certain factors that are directly related to the economic growth of Bangladesh. The objective is to determine how these growth factors behaved against an increase or decrease in the level of GDP growth. The whole study is based on data collected from the World Bank databases. A number of tests, such as: “Augmented Dickey-Fuller Test”, “Cointegration Test” & “Johansen Test for Cointegration” is used using the collected data.