Abstract
This paper uses the Johansen and Juselius cointegration technique to examine the long-run convergence between imports and exports for Bangladesh. For all measures (or cases), both the unrestricted and restricted cointegration results demonstrate that there exists a long-run relationship between Bangladesh’s exports and imports. This indicates the effectiveness of Bangladesh’s long-term macroeconomic planning in stabilizing the trade balance. The implication is that the country is not in violation of its international budget constraint.