Authors :
Arijita Roy; Dipon Kar
Volume/Issue :
Volume 8 - 2023, Issue 10 - October
Google Scholar :
https://tinyurl.com/294u5csy
Scribd :
https://tinyurl.com/38b2umhk
DOI :
https://doi.org/10.5281/zenodo.10040239
Abstract :
This study examines the effect of the
devaluation of local currency BDT against the US Dollar
on the import-export performance of Bangladesh. Time
series monthly basis data on export, import & exchange
rate of Bangladesh from January-2021 to September-
2022 is analyzed in this study to explore the impact. Data
from secondary sources like Bangladesh Bank, Export
Promotion Bureau, etc. is used in this paper. The
regression model is applied here to estimate the outcomes.
Major findings of the paper are: the regression model
estimates the devaluation of BDT against USD has a
significant impact on imports of Bangladesh where it
shows insignificant impact on exports of the country. In
addition, the finding of this paper is against the basic
economic theory in the aspect of imports of Bangladesh
since despite the devaluation of local currency, the
volume of imports is increasing continuously where it
needs to decrease according to economics. Moreover, both
the exports and imports of Bangladesh are in increasing
trend over the last couple of years.
Keywords :
Currency Devaluation, Exchange Rate Volatility, Export, Import, BDT, USD, Regression Model, Bangladesh Bank.
This study examines the effect of the
devaluation of local currency BDT against the US Dollar
on the import-export performance of Bangladesh. Time
series monthly basis data on export, import & exchange
rate of Bangladesh from January-2021 to September-
2022 is analyzed in this study to explore the impact. Data
from secondary sources like Bangladesh Bank, Export
Promotion Bureau, etc. is used in this paper. The
regression model is applied here to estimate the outcomes.
Major findings of the paper are: the regression model
estimates the devaluation of BDT against USD has a
significant impact on imports of Bangladesh where it
shows insignificant impact on exports of the country. In
addition, the finding of this paper is against the basic
economic theory in the aspect of imports of Bangladesh
since despite the devaluation of local currency, the
volume of imports is increasing continuously where it
needs to decrease according to economics. Moreover, both
the exports and imports of Bangladesh are in increasing
trend over the last couple of years.
Keywords :
Currency Devaluation, Exchange Rate Volatility, Export, Import, BDT, USD, Regression Model, Bangladesh Bank.
