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Abstract

This paper estimates an import demand function for foodgrains into Bangladesh during the period 1974 (I)-1985(I). An important finding is that the income elasticity of the demand for imports of foodgrains exceeds unity. The empirical results also suggest that in Bangladesh, the imports of foodgrains are price inelastic. A dynamic simulation test suggests a good-fit of the import demand function and importantly, the estimated equation is able to track the wide fluctuations of the imports of foodgrauis reasonably well.

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