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Development Outcomes from Openness to International Trade on Bangladesh’s Ready Made Garments Sector: Comparative Advantage, Need for Dynamic Gains and Role of the Government Md. Anwarul Azim

Development Outcomes from Openness to International Trade on Bangladesh’s Ready Made Garments Sector: Comparative Advantage, Need for Dynamic Gains and Role of the Government

Author (s)

Md. Anwarul Azim

Abstract

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Openness to international trade has brought about different development outcomes in different countries. Once it was thought that openness to trade is the panacea for development and it will always lead to positive development outcomes. However, Bangladesh’s experience of opening up to international trade suggests that it is a necessary but not sufficient condition for economic development. The country has experienced consistent economic growth throughout last two decades and a major contributor to her economic development has been export oriented Ready Made Garments (RMG) sector. Bangladesh could make RMG sector a success story owing to factor endowment of abundant labour. This comparative advantage in the factor of production allowed static gains like specialization to occur. However, only openness to trade did not make RMG sector a success story. The growth of RMG industries was supported by government as it introduced necessary institutional reforms related to RMG sector.  But the country failed to apply underlying comparative advantage in sectors other than RMG to be able to compete in global market. Under the mentioned backdrop, the purpose of this study is to analyze whether static gain has been transformed into dynamic one. To do so both qualitative and quantitative methods have been applied. Findings suggest that the country has been unable to achieve dynamic gains. In order to achieve dynamic gains openness to international trade must be supported by structural and institutional changes initiated by the government. The country should also focus on enhancing its comparative advantage by supporting existing sectors as well as promoting new sectors. In doing so trade policies should be directed towards signing free trade agreement (FTA) and export oriented labour intensive industrialization which in turn will lead to economic development and employment creation for the country.

 Keywords: International Trade, Comparative Advantage, Dynamic Gain, RMG, FTA.

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Title: Development Outcomes from Openness to International Trade on Bangladesh’s Ready Made Garments Sector: Comparative Advantage, Need for Dynamic Gains and Role of the Government
Author: Md. Anwarul Azim
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.4610506
Media: Online & Print
Volume: 5
Issue: 5
Acceptance Date: 26/02/2021
Date of Publication: 17/03/2021
PDF URL: https://ijsab.com/wp-content/uploads/726.pdf
Free download: Available
Page: 66-74
First Page: 66
Last Page: 74
Paper Type: Research Paper
Current Status: Published

 

Cite This Article:

Md. Anwarul Azim (2021). Development Outcomes from Openness to International Trade on Bangladesh’s Ready Made Garments Sector: Comparative Advantage, Need for Dynamic Gains and Role of the Government. International Journal of Science and Business, 5(5), 66-74. doi: https://doi.org/10.5281/zenodo.4610506

Retrieved from https://ijsab.com/wp-content/uploads/726.pdf

 

About Author (s)

Md. Anwarul Azim, Lecturer, Department of International Relations, University of Dhaka, Bangladesh. Email:  azim2216@gmail.com

 

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DOI: https://doi.org/10.5281/zenodo.4610506

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Does Brexit Have an Impact on EAC-EU Commodity Trade? Caroline Ntara

Does Brexit Have an Impact on EAC-EU Commodity Trade?

Author (s)

Caroline Ntara

Abstract

The East African Community (EAC) and European Union (EU), have an Economic Partnership Agreement (EPA) initiated in October 2014.  The EAC agreed to negotiate on the EPA in order to participate beneficially in the global economy, decrease poverty and support their economic development. By fast-tracking the already existing economic integration, the EAC wanted to eliminate barriers to trade, form bigger markets and stimulate productivity and investment expansions.  This paper predicts the trade in commodities between the EAC and EU for 10 years using import and export data from 2009-2016. Regression analysis is used to forecast the level of imports and exports. The study uses a linear model Ft=a+bt+ ε to forecast the level of imports and exports. Two linear models one for imports (Ft=2,791,351.50+28,196t) and another for exports (Ft=4,177,572.071 +62,500.3t) were formulated. The study concludes that there is no significant difference caused by BREXIT on EAC-EU commodity trade in 10 years.

 Keywords: Trading blocs, International trade, Economic Partnership Agreement, Brexit, Import, Export.

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Title: Does Brexit Have an Impact on EAC-EU Commodity Trade?
Author: Caroline Ntara
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.4026020
Media: Online
Volume: 4
Issue: 10
Acceptance Date: 10/09/2020
Date of Publication: 12/09/2020
PDF URL: https://ijsab.com/wp-content/uploads/598.pdf
Free download: Available
Page: 27-38
First Page: 27
Last Page: 38
Paper Type: Research Paper
Current Status: Published

Cite This Article:

Caroline Ntara (2020). Does Brexit Have an Impact on EAC-EU Commodity Trade? International Journal of Science and Business, 4(10), 27-38. doi: https://doi.org/ 10.5281/zenodo.4026020

Retrieved from https://ijsab.com/wp-content/uploads/598.pdf

 

About Author (s)

Caroline Ntara, Monarch Business School, Switzerland.

 

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DOI: https://doi.org/10.5281/zenodo.4026020