Exploring the Interconnections between Rice and Wheat Production, Consumption, and Import in Bangladesh

Fazlay Rabbi fazlay; Shaikh Mostak Ahammad; Ahsan Habib

doi:10.53808/KUS.2024.21.02.1143-mb

Authors

Fazlay Rabbi fazlay Department of Accounting, Hajee Mohammad Danesh Science and Technology University, Dianjpur-5200, Bangladesh
Shaikh Mostak Ahammad Department of Accounting, Hajee Mohammad Danesh Science and Technology University, Dianjpur-5200, Bangladesh
Ahsan Habib Department of Accounting, Hajee Mohammad Danesh Science and Technology University, Dianjpur-5200, Bangladesh

DOI:

https://doi.org/10.53808/KUS.2024.21.02.1143-mb

Keywords:

Granger Causality test, Johansen Cointegration test, Rice, Wheat.

Abstract

This study examines the interconnections between two primary food crops of Bangladesh those are rice and wheat (production, consumption, and import). Three methods use to examine. Those methods are unit root test, Granger causality test and Johansen cointegration test. Yearly data (collected from the website https://www.indexmundi.com from 1972 to 2022) are used to investigate the relationship between rice and wheat in Bangladesh. In the unit root test results, Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) show that rice and wheat (production, consumption, and import) are the initial difference, stationary. By applying the Granger causality test it is founded that consume rice, consume wheat, wheat import, rice production is unidirectional and consumption rice, rice production, rice import is bidirectional relationship. There are a long-run integrating relationship between rice and wheat (production, consumption and import) that’s founded by Johansen cointegration test. As a result, rice and wheat are depended on each other and having strong relationship.

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