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The article applies generalized gravity models to analyze Bangladesh's bilateral trade pattern using the panel data estimation technique. The results reveal that Bangladesh's trade is positively determined by the size of the economies, per capita gross domestic product differential and openness of the trading countries. Bangladesh's exports are positively determined by its income, partner countries' total import demand and openness, but negatively determined by partner countries' income and domestic inflation. Bangladesh's imports are positively determined by income of trading countries and degree of openness of the partner countries and negatively determined by partner countries' inflation. Transportation costs affect Bangladesh's trade negatively. [ABSTRACT FROM PUBLISHER]

This paper investigates the behaviour of Indian aggregate imports during the period 1971-1995. In the empirical analysis of the aggregate import demand function for India, cointegration and error correction modelling approaches have been used. In the aggregate import demand function for India, import volume is found to be cointegrated with relative import price and real GDP. The econometric estimates of the import-demand function for India suggest that import-demand is largely explained by real GDP, and is generally less sensitive to import price changes. Import liberalization is found to have had little impact on import demand. [ABSTRACT FROM AUTHOR]

This paper investigates the existence of a long-run aggregate merchandise import demand function for Bangladesh during the period 1974-94. The cointegration and error correction modelling approaches have been applied. Empirical results suggest that there exists a unique long-run or equilibrium relationship among real quantitities of imports, real import prices, real GDP and real foreign exchange reserves. The dynamic behaviour of import demand has been investigated by estimating two types of error correction models, in which the error correction terms have been found significant. In model I, real import prices and real GDP (lagged one year) and in model II, real import prices, real GDP (lagged one year), real imports (lagged one quarter) and a dummy variable capturing the effects of import liberalization policies have all emerged as important determinants of import demand function. The error correction models have also been found to be robust as they satisfy almost all relevant diagnostic tests. [ABSTRACT FROM AUTHOR]