Aggregated imports and expenditure components in Bangladesh: A cointegration and equilibrium correction analysis

Even though there have been a few studies on Bangladesh's aggregate import demand, the effects of global financial crisis (GFC) demand still need to be measured. The short-run determinants also remained identified in country. This paper explores both dynamic and long-run cointegrating relationships, capturing impact GFC demand. study uses annual data from 1980 2021 (N = 42) employs different econometric techniques for efficient results essential compelling policy implications. derives an equation using best error correction mechanism. Additionally, this includes unconventional determinants, namely, foreign currency reserves components expenditure (i.e., exports, private consumption government expenditures, expenditures investment goods), along with traditional function. finds that all conventional are significant long short run. All except relative price positively influence volume income elasticity reduces over time, inelasticity remains non-zero negative, which indicates competitiveness domestic product substitutes importable goods economy. In run, trade liberalization limited positive findings would helpful import-related implications