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Assignment On Bangladesh Economics

   

Added on  2022-09-26

42 Pages3013 Words21 Views
International Trade: Bangladesh Context
Source:
Bangladesh Foreign Trade Institute (BFTI)

Bangladesh Economy
❑ GDP growth remained high
 Over the last two decades, GDP growth rate (5.9%) significantly
surpassed the global average (2.7%) and remained higher than the
average for developing countries (5.1%)
 If we exclude China, average GDP growth rate of Bangladesh was
around 2 percentage point higher than average of (other)
developing countries
 GDP growth rate of Bangladesh in FY2018-19: 8.11%
❑ Structural changes in the economy
 Share of Agriculture Sector in GDP declined from 31% in 1990 to
13.82% in FY 2018
❑ Per capita income (GNI) is on the rise
 Per capita GNI in nominal terms: USD 1909 (FY2019)
 Set to graduate from LDC to Developing country in 2024
 Graduated to lower middle income countries (LMIC) from low
income countries (LIC) in July 2015 (2014: threshold USD 1,045)

Importance of Trade
GDP = C + I + G + (X – M) or GDP = private
consumption + (gross investment + government
investment) + government spending + (exports –
imports).

Importance of International Trade
Export : Foreign Exchange Earning / Employment /reduce
dependency on Foreign Assistance
Import : Consumption (giving consumers greater choice of
differentiated products) + Industrial raw material +
Employment
Trade is not only increasing business activities, but also
- generating employment opportunities for millions
- Skills development
- attracting foreign investment
- Innovation and entrepreneurship

Importance of International Trade
• Trade facilitates export diversification : new markets,
new materials and new production possibilities.
• Trade encourages innovation and technology transfer
through foreign direct investment.
• Plays a role in the improvement of quality of goods,
labour productivity and environmental standards.
• It increased competition and the exchange of best
practices between trade partners and build capacity
in industry and product standards.

Contribution of Export earning in National GDP
FY Total GDP Export earning % of share in GDP
2010-11 128681.86 22928.22 17.82%
2011-12 133401.26 24301.90 18.22%
2012-13 149996.65 27027.36 18.02%
2013-14 172886.57 330186.45 17.46%
2014-15 194550.09 301208.94 16.04%
2015-16 221002.62 34257.18 15.50%
2016-17 249723.89 34846.84 15.25%
2017-18 274,025 36668.17 13.38%
2018-19 40535.04
Value in million US$

Export-Import Balance of Trade
FY Exports Imports Balance
10-11 22928 33657 -10729
11-12 24302 35516 -11214
12-13 27027 33969 -6942
13-14 30187 40693 -10506
14-15 31209 40639 -9430
15-16 34257 40036 -5779
16-17 34847 43666 -8819
17-18 36668 52953.4 -16285
18-19 40535 54964 -14429
Value in million US$

Transition in trade
• In case of Bangladesh three phases can be discerned as regards global
integration of the Bangladesh economy
Phase-1: Post-independence to late 1970s → Protectionist, import-
substituting, inward looking
Phase-2: Early 1980s to Early 1990s → Gradual opening to global
markets
Phase-3: Mid-1990s to current period → Faster pace of global
integration
• Main features of Bangladesh’s Trade Policy: Trade liberalisation;
Deregulation; Reduction of tariffs; Removal of NTBs; Reduction of anti-
export bias in the economy; import liberalisation

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