Trade Liberalization and its Effects on the Economic Growth of Bangladesh: An Empirical Analysis

Posted: 28 Apr 2016

See all articles by Shapan Majumder

Shapan Majumder

Shandong University - School of Economics; Comilla University - Department of Economics

Md. Masud Rana

Department of Business Administration, Z.H. Sikdar University of Science and Technology

Date Written: April 28, 2016

Abstract

The objective of this paper is to assess the effectiveness of the trade policy on Bangladesh economy between the periods 1990 to 2010. This research analyzes the achievements of the economy regarding the important variables such as growth of GDP, export, import, exchange rate, terms of trade, and foreign reserve after the trade liberalization in 1990s. The study demonstrates that the inward policy of the trade liberalization reduces the import while the forward policy increases the employment, production, and export. Finally, liberalization policy improves overall economic indicators as GDP per capita, FDI, and remittances have been growing up since pre-liberalization. The study shows that both export and import have increased noticeably since liberalization, with import rising faster than export in the period immediately after liberalization.

Keywords: Trade Policy, Trade Liberalization, Export, Import, Bangladesh

Suggested Citation

Majumder, Shapan and Rana, Md. Masud, Trade Liberalization and its Effects on the Economic Growth of Bangladesh: An Empirical Analysis (April 28, 2016). American Journal of Trade and Policy, Vol. 3, No. 1, 2016 (Page 7-16) . Available at SSRN: https://ssrn.com/abstract=2771537

Shapan Majumder

Shandong University - School of Economics ( email )

School of Economics, Shandong University
No. 27 Shanda Nanlu
Jinan, Shandong 250100
China

Comilla University - Department of Economics ( email )

Comilla University Road
Kotbari, Comilla 3500
Bangladesh

Md. Masud Rana (Contact Author)

Department of Business Administration, Z.H. Sikdar University of Science and Technology ( email )

Kartikpur
Shariatpur
Bangladesh

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