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Article
Trade, Growth and Wage Inequality in Bangladesh
Journal of International Trade and Economic Development (2007)
  • Hiranya K Nath, Sam Houston State University
  • Khawaja A Mamun, Sacred Heart University
Abstract
Using model selection techniques based on out-of-sample predictive ability criterion in a Vector Autoregression (VAR) framework, this paper empirically examines the causal relations among growth, trade, and wage inequality in Bangladesh between 1971 and 2000. There is some evidence of bi-directional causality between growth and inequality and between trade and growth. That growth causes trade and that trade causes inequality are robust results. Furthermore, evidence strongly suggests that investment is important for trade, and the terms of trade between agricultural products and manufacturing products is an important causal determinant of both growth and trade.
Keywords
  • Bangladesh,
  • trade,
  • trade openness,
  • wage inequality,
  • out-of-sample
Disciplines
Publication Date
2007
Citation Information
Hiranya K Nath and Khawaja A Mamun. "Trade, Growth and Wage Inequality in Bangladesh" Journal of International Trade and Economic Development Vol. 16 Iss. 4 (2007)
Available at: http://works.bepress.com/khawaja_mamun/11/