CAUSALITY BETWEEN EXCHANGE RATE AND ECONOMIC GROWTH IN BANGLADESH

  • Kazi Mohammed Kamal Uddin PhD Candidate School of Economics Huazhong University of Science and Technology Wuhan, Hubei, P.R.China
  • Mohammad Morshedur Rahman PhD Candidate School of Management Huazhong University of Science and Technology Wuhan, Hubei, P.R.China
  • G. M. Azmal Ali Quaosar Assistant Prof., Department of Management Studies, Comilla University, Comilla, Bangladesh
DOI: https://doi.org/10.19044/esj.2014.v10n31p%25p

Abstract

This paper attempts to examine the relationship between Exchange Rate (ER) and Economic Growth (EG) proxied by Real Gross Domestic Product (RGDP) in Bangladesh for a period of 41 years ranges from 1973 to 2013 by using time series econometric technique. The empirical results show that there is a significant positive correlation between ER and EG. The results also advocate the presence of long-run equilibrium relationship between ER and EG. This is evidenced from Granger’s Causality Test that there is a bi-directional causality runs through ER to EG and EG to ER.

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Published
2014-11-28
How to Cite
Uddin, K. M. K., Rahman, M. M., & Ali Quaosar, G. M. A. (2014). CAUSALITY BETWEEN EXCHANGE RATE AND ECONOMIC GROWTH IN BANGLADESH. European Scientific Journal, ESJ, 10(31). https://doi.org/10.19044/esj.2014.v10n31p%p
Issue
Vol 10 No 31 (2014): ESJ November Edition
Section
Articles