How Do Net Exports and Remittances Impact on Economic Growth in Bangladesh? Insight from ARDL Time Series Model

This study delves into the intricate contribution of net exports and remittances on economic growth of Bangladesh with a focus of their impact on Gross Domestic Product (GDP). Net exports along with remittances are considered as key independent variables influencing the economic landscape of the country. The long-run and short-run effects of net exports and remittances on GDP are analyzed by conducting the Autoregressive Distributed Lag (ARDL) model over time period 1980-1922. The results of this study show that there is a positive effect of net export, remittance and gross capital formation on economic growth. On the other hand, all these independent variables have negative impact in short run and will adjust in long run significantly. As Bangladesh is a large remittance receiving country, export also increases in large volume by gross capital formation which increases domestic investment and output. The effects of remittances on GDP growth and exports on economic growth have each been the subject of much research, but independently. Buckling the payoff of exports and remittances on economic growth has not been studied. To fill this inane, we have tried to show how remittances and exports together boost economic growth. The findings contribute to a deeper understanding of the mechanisms through which net exports and remittance inflows shape economic outcomes in Bangladesh, offering insightful information to stakeholders and policymakers who are active in promoting sustainable economic development.