Trade liberalization in Bangladesh: the process and its impact on macro variables particularly export expansion

Mohammad Hossain and Mohammad Alauddin ()

Journal of Developing Areas, 2005, vol. 39, issue 1, 127-150

Abstract: This paper examines the process of Bangladeshís trade liberalization and its impact on the growth and structure of exports, imports, GDP and other relevant macroeconomic variables with particular emphasis on exports. It also provides an updated account of the various structural adjustment programs undertaken in Bangladesh including trade, fiscal, industrial and financial reforms, and explains how these reforms supplemented one another to promote greater market and export orientation. Various Indicators of trade liberalization show a substantial shift of the Bangladesh external trade regime and the resultant reduction in anti-export bias. Spearheaded by textiles and readymade garments, both total- and manufacturing exports consistently grew over the post-liberalization period. Real GDP also registered a steady growth during the post-liberalization period, particularly during the 1990s. An empirical investigation based on a distributed lag modeling and cointegration suggests that both anti-export bias reduction and import-GDP ratio, the latter being a proxy for imported capital, have significantly impacted on exports in the long-term.

Keywords: Anti-Export Bias; Export Diversification; Market Diversification; Real Effective Exchange Rates; Structural Change; Trade Liberalization (search for similar items in EconPapers)
JEL-codes: C10 F13 F14 F40 (search for similar items in EconPapers)
Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://muse.jhu.edu/journals/jda/summary/v039/39.1hossain.html

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jda:journl:vol.39:year:2005:issue1:pp:127-150

Access Statistics for this article

More articles in Journal of Developing Areas from Tennessee State University, College of Business Contact information at EDIRC.
Bibliographic data for series maintained by Abu N.M. Wahid ().