1. Introduction After the collapse

1. Introduction
After the collapse of Bretton-Woods system in 1973, variability of exchange rate movement increased enormously and this led policy makers to inspect the effect of the exchange rate variability on trade balance. Though there was a common understanding about the direction but previous studies found somewhat different results. It may be due to lack of product or sector disaggregation, different methodology or time period under study. A country's economic development largely depends on its export performance. There is a traditional view that exchange rate depreciation amplifies export growth of a country. But is it true for Bangladesh? Since independence of Bangladesh, its currency has started to depreciate and subsequently export earnings have found to be increased but the magnitude of the contribution is not clear. Over the year, Government of Bangladesh has taken number of initiatives and changed exchange rate policy to increase export and to reduce trade deficit. Though export has increased but age-long trade deficit has not squeezed much which results in balance of payment crises that has continuously impeded our economic development. From 2003, Bangladesh has introduced free- floating exchange rate system with the expectation of a significant change of pattern and volume of export. But, the direction of change still remained an empirical question and hence, there is no easy solution which leaves the topic open for further research. Therefore, knowledge of the extent to which exchange rate variability affects exports is important for designing exchange rate policy. This paper focuses empirical explanation of real exchange rate and its variability on international trade of Bangladesh.

Hasil (Bahasa Indonesia) 1:

1. Pendahuluan After the collapse of Bretton-Woods system in 1973, variability of exchange rate movement increased enormously and this led policy makers to inspect the effect of the exchange rate variability on trade balance. Though there was a common understanding about the direction but previous studies found somewhat different results. It may be due to lack of product or sector disaggregation, different methodology or time period under study. A country's economic development largely depends on its export performance. There is a traditional view that exchange rate depreciation amplifies export growth of a country. But is it true for Bangladesh? Since independence of Bangladesh, its currency has started to depreciate and subsequently export earnings have found to be increased but the magnitude of the contribution is not clear. Over the year, Government of Bangladesh has taken number of initiatives and changed exchange rate policy to increase export and to reduce trade deficit. Though export has increased but age-long trade deficit has not squeezed much which results in balance of payment crises that has continuously impeded our economic development. From 2003, Bangladesh has introduced free- floating exchange rate system with the expectation of a significant change of pattern and volume of export. But, the direction of change still remained an empirical question and hence, there is no easy solution which leaves the topic open for further research. Therefore, knowledge of the extent to which exchange rate variability affects exports is important for designing exchange rate policy. This paper focuses empirical explanation of real exchange rate and its variability on international trade of Bangladesh.

Hasil (Bahasa Indonesia) 2:

1. Pendahuluan
Setelah runtuhnya sistem Bretton Woods pada tahun 1973, variabilitas pergerakan nilai tukar meningkat sangat besar dan ini menyebabkan para pembuat kebijakan untuk memeriksa efek variabilitas nilai tukar pada neraca perdagangan. Meskipun ada pemahaman bersama tentang arah namun studi sebelumnya menemukan hasil yang agak berbeda. Mungkin karena kurangnya produk atau sektor pemilahan, metodologi berbeda atau jangka waktu yang diteliti. Pembangunan ekonomi suatu negara sangat tergantung pada kinerja ekspor. Ada pandangan tradisional yang depresiasi nilai tukar memperkuat pertumbuhan ekspor suatu negara. Tetapi apakah itu benar untuk Bangladesh? Sejak kemerdekaan Bangladesh, mata uangnya telah mulai terdepresiasi dan pendapatan kemudian ekspor telah ditemukan meningkat tetapi besarnya kontribusi tidak jelas. Selama tahun ini, Pemerintah Bangladesh telah mengambil sejumlah inisiatif dan mengubah kebijakan nilai tukar untuk meningkatkan ekspor dan mengurangi defisit perdagangan. Meskipun ekspor meningkat tetapi defisit perdagangan usia panjang tidak meremas banyak yang menghasilkan keseimbangan krisis pembayaran yang terus menghambat pembangunan ekonomi kita. Dari tahun 2003, Bangladesh telah memperkenalkan gratis-sistem nilai tukar mengambang dengan harapan perubahan yang signifikan dari pola dan volume ekspor. Namun, arah perubahan masih tetap menjadi pertanyaan empiris dan karenanya, tidak ada solusi yang mudah yang meninggalkan topik terbuka untuk penelitian lebih lanjut. Oleh karena itu, pengetahuan tentang sejauh mana pertukaran tingkat variabilitas mempengaruhi ekspor penting untuk merancang kebijakan nilai tukar. Makalah ini berfokus penjelasan empiris nilai tukar riil dan variabilitas pada perdagangan internasional dari Bangladesh.