Trade,growth and wage inequality in Bangladesh |
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| Authors: | Hiranya K Nath Khawaja A Mamun |
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| Institution: | 1. Department of Economics and International Business , Sam Houston State University , Texas, USA eco_hkn@shsu.edu;3. Department of Economics and Finance, John F. Welch College of Business , Sacred Heart University , Connecticut, USA |
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| Abstract: | Abstract Using model selection techniques based on out-of-sample predictive ability criterion in a Vector Autoregression (VAR) framework, this paper empirically examines the causal relations among growth, trade, and wage inequality in Bangladesh between 1971 and 2000. There is some evidence of bi-directional causality between growth and inequality and between trade and growth. That growth causes trade and that trade causes inequality are robust results. Furthermore, evidence strongly suggests that investment is important for trade, and the terms of trade between agricultural products and manufacturing products is an important causal determinant of both growth and trade. |
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| Keywords: | Bangladesh trade trade openness wage inequality out-of-sample predictive ability mean squared forecast errors |
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