Determinants of Jute Export Demand: An Empirical Investigation on Bangladesh
Abstract
This paper investigates the export demand of jute and jute goods of Bangladesh. Following trade literature, a conventional export demand equation is specified for jute export demand of Bangladesh. GDP of trade partner country and Export Unit Value Index[1] (EVI) of Bangladesh are considered as income and price variables respectively. For estimating purposes we only considered five top countries, USA, UK, Belgium, Germany and Australia, where Bangladesh exports more. The regression result shows that income of USA and Australia are only significant determinant of Bangladeshi jute exports. Moreover, export price is also not found significant determinant in case of Bangladeshi jute goods export. Policy implication of these findings are Bangladeshi exporters should not rely on to the traditional markets only. Government should come forward and disseminate information to exporters about market, barriers to be faced and advantages in a particular market.
[1] Export unit value index is a price index that measures average value changes in heterogeneous cluster of units
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