Abstract
This chapter analyzes various trade liberalization policies implemented in Bangladesh in phases and examines how the policies have contributed to overall trade performances. As part of liberalization, customs duty rate was reduced from 350 percent in 1990 to 25 percent in 2011. The number of operative tariff slabs was reduced from 24 in the 1980s to 5 in 2010. Trade liberalization policies contributed positively to the enhancement of country’s overall trade—the share of which is increased from 12 percent of gross domestic product (GDP) in 1990 to about 50 percent of GDP in 2015. However, still there are scopes of improvement of trade regime by further liberalizing the sector through eliminating all sorts of biases and rationalizing supplementary import duties and non-tariff barriers.
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Notes
- 1.
Vt is calculated as follows: \( {V}_t={\left[\frac{1}{m}\sum \limits_{i=1}^m{\left(\ln REE{R}_{t+i-1}-\ln REE{R}_{t+i-2}\right)}^2\right]}^{1/2} \).
- 2.
Only quarterly data are available from Bangladesh Bank. A longer and monthly time series of cash incentives, if available, would produce better results.
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Appendix
Appendix
Evolving markets for exporting (subsidized) products. Notes: Value of exports in thousand taka. (Source: Bangladesh Bank; Export Promotion Bureau (EPB))
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Hossain, M. (2020). Trade Liberalization Policies and Trade Performances in Bangladesh: An Empirical Evaluation. In: Hossain, M. (eds) Bangladesh's Macroeconomic Policy. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-15-1244-5_9
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DOI: https://doi.org/10.1007/978-981-15-1244-5_9
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