Using Input–Output Analysis Framework to Explain Economic Diversification and Structural Transformation in Bangladesh

Valerie Mercer-Blackman (vmercerblackman@adb.org), Amador Foronda (asforonda.consultant@adb.org) and Mahinthan J. Mariasingham (mmariasingham@adb.org)
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Valerie Mercer-Blackman: Asian Development Bank
Amador Foronda: Asian Development Bank
Mahinthan J. Mariasingham: Asian Development Bank

No 513, ADB Economics Working Paper Series from Asian Development Bank

Abstract: Existing literature on economic growth and structural change relies on trade data to make pronouncements about a country’s competitiveness and long-term growth prospects through the acquisition of capabilities. However, insufficient data give us a limited view of what is happening within the domestic economy, and how the development of manufacturing through links in the production process leads to the export of intermediate or final products. Using input–output data, this paper devises an agglomeration indicator to measure economic diversification and to compare Bangladesh with other key economies. In the process, we shed light on the symbiotic relationship between manufacturing and services as the country develops. Despite Bangladesh’s astounding growth over the past 15 years, diversification has been somewhat slower than expected for its level of development.

Keywords: Bangladesh; business services; economic diversification; global value chains; input–output tables; ready-made garments; structural transformation (search for similar items in EconPapers)
JEL-codes: D24 D57 F15 O14 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2017-05-24
New Economics Papers: this item is included in nep-hme and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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