My primary research interest lies in International Economics, Development Economics and Applied Econometrics. I also have interest in Open Economy Macroeconomics and Economic Geography. You can find my research statement in here.
Value-added Trade, Exchange Rate Pass-Through, and Trade Elasticity: Revisiting Trade Competitiveness [Job Market Paper]
How is exchange rate pass-through (ERPT) measures affected by increasing participation in global value chains? This paper measures ERPT for value-added trade, where intermediate inputs are shared among countries in a back-and-forth manner for producing a single final product. Estimation of pass-through was done using World Input-Output Database (WIOD), World Economic Outlook (WEO), and OECD statistics. Empirically estimated findings suggest that ignoring the value-added trade will cause a systematic upward bias in the estimation of ERPT. From empirical investigation, it is also evident that there exists substantial heterogeneity in pass-through rates across sectors: sectors with high-integration into global market functions with a lower rate of exchange in comparison to sectors with less integration.
Daily Exchange Rate Pass-Through into Micro Prices (with Renzo M. Alvarez, Amin Shoja, and Hakan Yilmazkuday) [R & R in Applied Economics Letter]
This paper estimates the exchange rate pass-through (ERPT) by using good-level daily data on wholesale prices of imported agricultural products, where the identification is achieved by using daily data on the domestic inflation rate. The results of standard empirical analyses are in line with existing studies that employ lower frequencies of data by showing evidence for incomplete daily ERPT of about 5 percent. The key innovation is achieved when nonlinearities in ERPT are considered, where ERPT is doubled to about 10 percent when daily nominal exchange rate changes are above 0.55 percent, daily frequencies of price change are above 3.12 percent, and storage life of a product is above 10 weeks. The tables turn when the investigation is restricted to non-zero price changes, where there is evidence for complete ERPT for observations with values above such thresholds.
Immigration and International Trade: Cross-country Evidence (with Ahmed Tariq Aziz) [Under Review]
This paper examines the impact of immigration on bilateral trade using a panel dataset of exports from 18 top migrant destinations (countries) to 69 top emigrant sources (countries) over five decades. Using various specifications of the gravity equation, we find that immigrants’ ethnic network contributes positively to exports, though the impact is much smaller than reported previously. Using a matching gravity framework, we explore the possibility of an indirect negative impact of immigration on bilateral trade. Though our estimation provides evidence of only a small direct positive impact of immigration on exports, we find the impact is much more important for a subset of countries. Our paper also provides evidence that immigration-trade links vary across product types.
Work In Progress
Markups, Firm Location, and Pricing Strategy (with Hakan Yilmazkuday)
Domestic Shock Propagation into International Demand for Bangladeshi Apparel Products
Air Pollution, Environmental Goods Trade: Revisiting the EKC Hypothesis (with Sunera Saba Khan)
- Remittances and Poverty in Bangladesh: Some Econometric Exercise (with Selim Raihan) Bangladesh Economic Outlook, Vol 2 & No 4 (2010)
- Bangladesh: Migration, Remittances and Development (with Selim Raihan) in "Migration, Remittances and Development in South Asia", Edited by Saman Kelegama, published by SAGE publications Pvt, India (2011).
Published Policy Reports
- Bangladesh Country Paper: Employment Effects of Different Development Policy Instruments (with Selim Raihan, Bazlul Haque Khondker, Farazi Binti Ferdous), Swiss Programme for Research on Global Issues for Development, Working paper -- 2015/5.
- Dynamic Stochastic General Equilibrium model for Bangladesh (with Selim Raihan and Bazlul H. Khondker). This working paper was done in collaboration with the Central bank of Bangladesh (2013)
- Assessing Price Volatility of Selected Essential Commodities in Bangladesh (with Selim Raihan, and Bazlul Haque Khondker), A report prepared for the Ministry of Commerce, Government of Bangladesh (2011)