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Testing the Nexus between Imported Capital Goods and Manufacturing Output in Bangladesh

Mohammad Mohidul Islam & Mohammad Mohidul Islam

Bank Parikrama: A Journal of Banking and Finance2025https://doi.org/10.64204/bp1019-7044/49(1-4)/a20255article
ABDC C
Weight
0.37

What the paper says

Abstract Considering the increasing importance of imported capital goods in the developing economy’s manufacturing sector, our empirical study explores the relationship between imported capital goods, inflation, financial development, trade openness, and manufacturing output in Bangladesh using data from 1991 to 2022. The econometric analyses utilize the augmented ARDL (Auto-regressive Distributed Lag) model, frequency domain causality, and counterfactual analysis. The results suggest a significant connection between the import of capital goods and manufacturing output in Bangladesh in the near and long term. Specifically, a favorable long-term association exists between imported capital goods and manufacturing output. Furthermore, short-term adjustments are consistently made to uphold this association. The frequency domain causality analysis and counterfactual analysis also support the findings of the augmented ARDL approach. In addition, this study also emphasizes that inflation and trade openness adversely impact manufacturing output, while financial development positively influences manufacturing output in the economy. JEL Classification: C32, F14, F41, O14 Keywords: Augmented ARDL , Bangladesh , Imported Capital Goods , Manufacturing Output , Trade Openness

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https://doi.org/https://doi.org/10.64204/bp1019-7044/49(1-4)/a20255

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@article{mohammad2025,
  title        = {{Testing the Nexus between Imported Capital Goods and Manufacturing Output in Bangladesh}},
  author       = {Mohammad Mohidul Islam & Mohammad Mohidul Islam},
  journal      = {Bank Parikrama: A Journal of Banking and Finance},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.64204/bp1019-7044/49(1-4)/a20255},
}

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Testing the Nexus between Imported Capital Goods and Manufacturing Output in Bangladesh

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.