The Dynamics of Relationship among Export, Import and Economic Growth in Bangladesh

Import and Export can be used to determine the productivity of a country. Besides, GDP (Gross Domestic Product) is an indicator of economic development. In this paper,the causal relationship among the per capita GDP, Import and export in Bangladesh using Co-integration, ADF and Vector Error Correction Model with a data set of 1979-2018 has been explored. The results indicate that there are long term and short-term relationshipsamong variables. Export directly affects GDP and import indirectly affects GDP. The results suggest that both import and export has a positive impact on GDP and there is a huge opportunity to improve the economic condition. The findings have significant implications from the point of view of the economic and financial development in Banglades