ISSN 2736-1721
Global Journal of Business Management ISSN 6731-4538 Vol. 13 (2), pp. 001-007, February, 2019. © International Scholars Journals
Full Length Research Paper
Import demand function for Bangladesh: A rolling window analysis
Qazi Muhammad Adnan Hye1* and Masood Mashkoor2
1Department of Economics, College of Business Management (CBM), Institute of Business Management IOBM, Karachi, Pakistan.
2Department of Commerce Federal Urdu University of Karachi, Karachi, Pakistan.
Accepted 16 October, 2018
Abstract
This study aims to estimate aggregate import demand function for Bangladesh economy by using the data of 1980 to 2008. Estimation evidence provided by using autoregressive distributed lag (ADRL) approach to cointegration and rolling window regression method to estimate the coefficient of each observation in the sample by fixing the window size. The estimation result confirms long run relationship between imports, relative price and economic activity, and long run economic growth elasticity is (0.93) positive and relative price elasticity in the long run (-0.29) is negative. In contrast regression results of rolling window method demonstrates that the long run elasticities of national income variable are vary in the range of 0.81 to 0.96 and the relative price elasticities are negative according to the theory except few years.
Key words: Bangladesh, import demand, autoregressive distributed lag.