The Competitiveness and Future Challenges of Bangladesh in International Trade
The Competitiveness and Future Challenges of Bangladesh in International Trade
Dr. Laila Arjuman Ara Visiting Research Fellow WTO Research Centre, Aoyama Gakuin University Tokyo, Japan and Assistant Professor, Southeast University, Dhaka Email:lailamolly2003@yahoo.com And M. Masudur Rahman JSPS-UNU Postdoctoral Fellow United Nations University-Institute of Advanced Studies Yokohama, Japan Email:rahman@ias.unu.edu
Abstract: Bangladesh’s steady growth for the past two decades and the average annual GDP growth more than 6 percent over the last five years and drop of almost 10 percent in the poverty rate - are both very respectable. The past decade’s boom in exports – particularly the apparel sector is very significant to country’s economic growth. This report gauges Bangladesh’s trade competitiveness and future challenges. This report uses the Prof. Michael Porter’s data base of Harvard Business School for cluster map and bubble for competitiveness analysis, the world trade Indicator (WDI) database, International Trade Centre (ITC)’s trade map and competitiveness and World Economic Forum (WEF) website for data and graphical presentation for competitiveness analysis. To make the most of its export opportunities on the changing international playing field, Bangladesh needs to follow a strategic game plan, invest in infrastructure, technology and skills, streamline policies, and improve quality and safety standards.
Key words: Bangladesh; Trade competitiveness
1. Trade Competitiveness: Essential Issue 1.1 Introduction: The determinants of competitiveness are many and complex. For hundreds of years, economists have tried to understand what determines the wealth of nations. This attempt has ranged from Adam Smith’s focus on specialization and the division of labor to neoclassical economists’ emphasis on investment in physical capital and infrastructure, and, more recently, to interest in other mechanisms such as education and training, technological progress,
Dr. Laila Arjuman Ara Visiting Research Fellow WTO Research Centre, Aoyama Gakuin University Tokyo, Japan and Assistant Professor, Southeast University, Dhaka Email:lailamolly2003@yahoo.com And M. Masudur Rahman JSPS-UNU Postdoctoral Fellow United Nations University-Institute of Advanced Studies Yokohama, Japan Email:rahman@ias.unu.edu
Abstract: Bangladesh’s steady growth for the past two decades and the average annual GDP growth more than 6 percent over the last five years and drop of almost 10 percent in the poverty rate - are both very respectable. The past decade’s boom in exports – particularly the apparel sector is very significant to country’s economic growth. This report gauges Bangladesh’s trade competitiveness and future challenges. This report uses the Prof. Michael Porter’s data base of Harvard Business School for cluster map and bubble for competitiveness analysis, the world trade Indicator (WDI) database, International Trade Centre (ITC)’s trade map and competitiveness and World Economic Forum (WEF) website for data and graphical presentation for competitiveness analysis. To make the most of its export opportunities on the changing international playing field, Bangladesh needs to follow a strategic game plan, invest in infrastructure, technology and skills, streamline policies, and improve quality and safety standards.
Key words: Bangladesh; Trade competitiveness
1. Trade Competitiveness: Essential Issue 1.1 Introduction: The determinants of competitiveness are many and complex. For hundreds of years, economists have tried to understand what determines the wealth of nations. This attempt has ranged from Adam Smith’s focus on specialization and the division of labor to neoclassical economists’ emphasis on investment in physical capital and infrastructure, and, more recently, to interest in other mechanisms such as education and training, technological progress,