Mohammad Ismail Hossain, Mst. Esmat Ara Begum, Eleni Papadopoulou and Anastasios Semos
This study estimates a Vector Error Correction Model (VECM) that incorporates the linkages among the agriculture, industry, construction, transport, storage and communication and…
Abstract
This study estimates a Vector Error Correction Model (VECM) that incorporates the linkages among the agriculture, industry, construction, transport, storage and communication and service sectors for Bangladesh by using historical data from 1979 to 2009. Two cointegrating vectors confirm that all the different sectors moved together over the sample period, and therefore that their growth rates are interdependent. The long-run relationships of the industrial, construction, transport, storage and communication and service sectors to the agricultural sector were established, and the results show that the industrial and construction sectors contribute positively to the agricultural sector, the growing service sector contributes negatively and the transport, storage and communication sector shows mixed results. In addition, weak exogeneity for the agricultural sector is rejected and this underlines the fact that the agricultural sector should be considered by policymakers in any analysis of inter sector growth.
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Mohammad Ismail Hossain, Eleni Papadopoulou and Mst. Esmat Ara Begum
This paper examines the cointegration of wheat market prices in Northern Bangladesh. Results are based on weekly wholesale price data on wheat collected from the Department of…
Abstract
This paper examines the cointegration of wheat market prices in Northern Bangladesh. Results are based on weekly wholesale price data on wheat collected from the Department of Agricultural Marketing (DAM) in eight markets in the Rangpur division of Northern Bangladesh. The data has 208 observations for wheat in each of the eight markets ranging over a period of January 2006 to December 2009. Johansen’s cointegration test reveals that most of the wholesale markets of wheat in the Rangpur division are co-integrated which indicates that price signals and information are transmitted smoothly across the markets. The discovery of the market integration appears to be quite significant for the success of price policy and market liberalization programs which are being undertaken in Bangladesh.