Authors :
Mohammad Anamul Huq
Volume/Issue :
Volume 8 - 2023, Issue 9 - September
Google Scholar :
https://bit.ly/3TmGbDi
Scribd :
https://tinyurl.com/y5df8eym
DOI :
https://doi.org/10.5281/zenodo.8379761
Abstract :
Currency devaluation and its impact on export
performance is critical for developing countries like
Bangladesh. This paper examines the relationship
between currency Depreciation and export performance
in Bangladesh from a macroeconomic perspective,
focusing on aggregate data whose main contribution
comes from major export sectors such as ready-made
garments, jute, jute products, fish, shrimp, leather and
leather products. The study sought to determine the
extent to which currency devaluation affects the export
performance of these sectors and to examine why
countries with similar economic situations perform better
than Bangladesh. The results were derived with the
conclusion that currency depreciation (DoC) resulting
from exchange rate volatility (ER) is not the sole factor
affecting export performance.The co-integration of many
other factors, namely the interest rate (IR), inflation (IF),
foreign direct investment (FDI), balance of payments
(BoP), and GDP per capita is inextricably linked. By
analyzing the data from 1990 to 2020, the study has
identified potential strategies and lessons that Bangladesh
can learn from the export success of other countries to
improve its performance.
Keywords :
Devaluation; Currency; Export Performance; Exchange Rate; Interest Rate; Inflation; Foreign Direct Investment; Balance of Payments; GDP Per Capita; Bangladesh.
Currency devaluation and its impact on export
performance is critical for developing countries like
Bangladesh. This paper examines the relationship
between currency Depreciation and export performance
in Bangladesh from a macroeconomic perspective,
focusing on aggregate data whose main contribution
comes from major export sectors such as ready-made
garments, jute, jute products, fish, shrimp, leather and
leather products. The study sought to determine the
extent to which currency devaluation affects the export
performance of these sectors and to examine why
countries with similar economic situations perform better
than Bangladesh. The results were derived with the
conclusion that currency depreciation (DoC) resulting
from exchange rate volatility (ER) is not the sole factor
affecting export performance.The co-integration of many
other factors, namely the interest rate (IR), inflation (IF),
foreign direct investment (FDI), balance of payments
(BoP), and GDP per capita is inextricably linked. By
analyzing the data from 1990 to 2020, the study has
identified potential strategies and lessons that Bangladesh
can learn from the export success of other countries to
improve its performance.
Keywords :
Devaluation; Currency; Export Performance; Exchange Rate; Interest Rate; Inflation; Foreign Direct Investment; Balance of Payments; GDP Per Capita; Bangladesh.
