Dr. Nusrate Aziz

Does A Real Devaluation Improve The Balance Of Trade?: Empirics From Bangladesh Economy

Nusrate Aziz — Fri, 13 Apr 2012 09:15:34 PDT

Similar to many other developing countries Bangladesh, which is the country of my concern, has been pursuing an active exchange rate policy basically to maintain a viable external account position, and competitiveness of its products in world market. The purpose of the study is, therefore, to estimate the impact of real devaluation on country's trade balance. The study constructs nominal and real effective exchange rates which are not readily available for the country. Using multivariate cointegration tests for non-stationary data, the error correction model, and impulse response functions the paper examines the impact of exchange rate policy in both short-and long-run. The estimated results demonstrate that real exchange rate has a significant positive impact on trade balance in the long-run. Thus, currency devaluation has been a significant stimulus for country's exports growth and improvement in current account position. However, the J-curve hypothesis can be explained as the appropriate phenomenon to improve its trade balance in response to exchange rate devaluation.

Expectations about the Future: How it affects the Current Consumption

Nusrate Aziz — Mon, 28 Nov 2011 13:09:07 PST

Oil price shocks

Nusrate Aziz — Mon, 28 Nov 2011 12:45:35 PST

Electronic Banking Practices in Bangladesh

Nusrate Aziz et al. — Mon, 26 Sep 2011 21:29:02 PDT

Bridging the gap between policymakers and academics

Nusrate Aziz et al. — Sat, 16 Jul 2011 00:23:34 PDT

FTA with India and Malaysia

Nusrate Aziz — Thu, 21 Oct 2010 04:30:48 PDT

Growth of Government Expenditure in Bangladesh: An Empirical Enquiry into the Validity of Wagner's Law

Mohammad Abul Kalam et al. — Tue, 30 Mar 2010 10:17:50 PDT

The study empirically investigates ‘Wagner's law,' the relationship between ‘social progress' and ‘growth of state activity' in an economy, using Bangladesh data from 1976 to 2007 in a bivariate as well as a trivariate framework incorporating ‘population size' as a third variable. The estimated results provide evidence in favour of Wagner's law for Bangladesh in both the short-run and long-run. There is a long-run cointegration relation among real government expenditure, real GDP and the size of population where government expenditure is positively tied with the real GDP (1.14), per capita GDP (1.51) and population size (0.21). Both the real GDP and GDP per capita Granger cause total government expenditure to change. Population size also comes up as a significant stimulus for public spending to grow in both the long-run and short-run.