International Journal of Arts and Social Science www.ijassjournal.com ISSN: 2581-7922, Volume 3 Issue 4, July-August 2020 Nurul Mohammad Zayed Page 86 The Dynamics of Relationship among Export, Import and Economic Growth in Bangladesh 1 Nurul Mohammad Zayed, 2 Md. Rayhanul Islam, 3 Shahiduzzaman Khan Shahi, 4 Arafat Hosain Neloy, 5 Irani Tanzeem Meem 1 Assistant Professor & Head, Department of Real Estate, Daffodil International University, Dhaka, Bangladesh (Corresponding Author) 2 Senior Lecturer, Department of Real Estate, Daffodil International University, Dhaka, Bangladesh 3 Independent Researcher, Department of Real Estate, Daffodil International University, Dhaka, Bangladesh 4 Independent Researcher, Department of Business Administration, Daffodil International University, Dhaka, Bangladesh 5 Independent Researcher, Department of Business Administration, Daffodil International University, Dhaka, Bangladesh Abstract: Import and Export can be used to determine the productivity of a country. Besides, GDP (Gross Domestic Product) is an indicator of economic development. In this paper,the causal relationship among the per capita GDP, Import and export in Bangladesh using Co-integration, ADF and Vector Error Correction Model with a data set of 1979-2018 has been explored. The results indicate that there are long term and short-term relationshipsamong variables. Export directly affects GDP and import indirectly affects GDP. The results suggest that both import and export has a positive impact on GDP and there is a huge opportunity to improve the economic condition. The findings have significant implications from the point of view of the economic and financial development in Bangladesh. Key words: Import, Export, GDP, ADF Test, Johansen Test, VECM, Casual relationship I. Introduction Import and export are vital elements for a country to meet its daily obligation and economic development. In this world, every country depends on another country because not all countries have the resources and skills needed to produce specific products and services. Bangladesh is a developing country with a huge population for meeting daily demand and hence must import raw materials from other countries. Bangladesh imports dairy products, machinery, and raw materials, on the other hand exports mainly the Ready-Made Garments (RMG) products. Bangladesh made its highest exports so far in January 2019 which amounts to BDT 465.30 billion on the otherhand the highest export of Bangladesh is BDT 279.82 billion occurred in July 2019 and the difference between export and import is huge. GDP has also reached 347.991 billion in 2019. However Bangladesh has toovercome this situation to develop its economic situation. The low cost manpower and availability of resources increase the opportunity to improve its economic condition in Bangladesh. II. Literature Review Ahmed& Uddin(2009) stated thatexport & remittance has a short-run influence on GDP growth. Besides export enhances in the long run &import does not influence GDP or export growth. Akhter(2015) explored that export