This study examines foreign direct investment(FDI)-growth and trade-growth relationships in Bangladesh during three major crises:the economic crisis of 2007-2008,the commodity crisis of 2016,and the coronavirus(COVID-...This study examines foreign direct investment(FDI)-growth and trade-growth relationships in Bangladesh during three major crises:the economic crisis of 2007-2008,the commodity crisis of 2016,and the coronavirus(COVID-19)pandemic of 2020.The augmented autoregressive distributed lag(AARDL)bounds testing approach and Bayer and Hanck cointegration are employed on time-series data spanning the period 1974-2020.The results suggest that exports have positive effects on economic growth,while imports have insignificant effects in both the short run and long run.Total trade(the sum of exports and imports)has a positive but weakly significant effect on economic growth only in the long run,whereas FDI exhibits a positive effect in both the short run and long run.Although the crises are not found to affect economic growth directly or through trade(i.e.,no dampening effect on trade-led growth),they are found to distort FDI-led growth in both the short run and long run.As robustness tests for long-run elasticities,the fully modified ordinary least squares(FMOLS)and dynamic ordinary least squares(DOLS)cointegration techniques are implemented,yielding results similar to those obtained with the AARDL.展开更多
文摘This study examines foreign direct investment(FDI)-growth and trade-growth relationships in Bangladesh during three major crises:the economic crisis of 2007-2008,the commodity crisis of 2016,and the coronavirus(COVID-19)pandemic of 2020.The augmented autoregressive distributed lag(AARDL)bounds testing approach and Bayer and Hanck cointegration are employed on time-series data spanning the period 1974-2020.The results suggest that exports have positive effects on economic growth,while imports have insignificant effects in both the short run and long run.Total trade(the sum of exports and imports)has a positive but weakly significant effect on economic growth only in the long run,whereas FDI exhibits a positive effect in both the short run and long run.Although the crises are not found to affect economic growth directly or through trade(i.e.,no dampening effect on trade-led growth),they are found to distort FDI-led growth in both the short run and long run.As robustness tests for long-run elasticities,the fully modified ordinary least squares(FMOLS)and dynamic ordinary least squares(DOLS)cointegration techniques are implemented,yielding results similar to those obtained with the AARDL.
