Concentration and Diversification of Export Economy of Bangladesh: Comparison and Policy Implication with Other Asian Countries

Main Article Content

Md Faiz
Pushkar Maitra

Abstract

Bangladesh has achieved consistent economic growth last ten years. Its export is also growing but heavily depending on garment sector. This paper measures how much Bangladesh’s export concentration than other Asian countries China, Thailand and Vietnam. This paper uses n-Firm concentration to measure top 4 sector concentration, Herfindahl-Hirschman (HH) index to measure single industry domination and analyses current export for compare how much percentage contribution changes of major industries over the period. This paper finds Bangladesh’s export highly concentrated on single industry whereas other countries are more diversified on different sectors. Thailand and Vietnam have the same characteristics with Bangladesh in many aspects, but their export sectors diversified very nicely over the year. It explains major reasons for extreme concentration of Bangladesh’s export. This paper proposes a diversification framework for Bangladesh with identifying four major variables i.e Dynamic variables, Favourable variables, Structural Transformational Variables, and Policy and Commercial policy. It also suggests some factors with implementation guide under each variable with the experience of Thailand and Vietnam to implement the proposed framework.

Keywords:
Export economy, concentration, export diversification, export policy, industrial policy, diversification framework

Article Details

How to Cite
Faiz, M., & Maitra, P. (2020). Concentration and Diversification of Export Economy of Bangladesh: Comparison and Policy Implication with Other Asian Countries. South Asian Journal of Social Studies and Economics, 7(4), 19-36. https://doi.org/10.9734/sajsse/2020/v7i430197
Section
Original Research Article

References

Bangladesh Economic Review; 2017.

Bangladesh Export Policy; 2015.

Ovi IH. Bangladesh export fall by 1.70% in January. Dhaka Tribune; 2020.

Available:https://www.dhakatribune.com/business/economy/2020/02/04/bangladesh-exports-fall-by-1-70-in-january

Taslim MA, Haque MS. Export performance of Bangladesh: Global recession and after (Working Paper). International Growth Centre, Bangladesh Foreign Trade Institute; 2011.

Taslim MA. Export diversification: Not yet. The Financial Express, 3rd December 2015; 2015.

World Bank. Bangladesh: Growing the economy through advances in agriculture; 2016.

Available:https://www.worldbank.org/en/results/2016/10/07/bangladesh-growing-economy-through-advances-in-agriculture

Workman D. Thailand’s top 10 exports; 2020.

Available:http://www.worldstopexports.com/ thailands-top-10-exports/

Mah K. An introduction to Vietnam’s import and export industries. Vietnam Briefing; 2018.

Available:https://www.vietnam-briefing.com/news/introduction-vietnams-export-import-industries.html/

Melitz MJ. The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica. 2003;71(6):1695–725.

Osakwe PN, Kilolo JM. What drives export diversification? New evidence from a panel of developing countries. UNCTAD Research Paper No. 3. UNCTAD/SER.RP/2018/3; 2018.

United Nations. Transforming our world: The 2030 agenda for sustainable development, A/RES/70/; 2015.

Available:https://sustainabledevelopment.un.org/content/documents/21252030%20Agenda%20for%20Sustainable %20Development%20web.pdf

United Nations. Agenda item 8, Programme of Action for the Least Developed Countries for the Decade 2011-2020, Istanbul, Turkey, 9-13 May 2011, A/CONF.219/3/Rev.1; 2011.

(Accessed on November 10, 2017)

Available:http://unohrlls.org/UserFiles/File/IPoA.pdf

AUC. Agenda 2063, The Africa We Want, Final Edition, Popular version. African Union Commission: Addis Ababa; 2015.

(Accessed on November 10, 2015)

Available:http://www.un.org/en/africa/osaa/pdf/au/agenda2063.pdf

United Nations. Making trade work for LDCs - A handbook on mainstreaming trade. United Nations: Geneva and New York; 2016.

Available:www.epb.gov.bd

Available:www.bbs.gov.bd

Available:www.stats.gov.cn

Available:www.gso.gov.vn

Available:www.bot.or.th

Arreau J, Poncet S. Export sophistication and economic growth: Evidence from China. Journal of Development Economics. 2011;97(2):281–92.

Lin JY, Li Y. Export and economic growth in China: A demand-oriented analysis. China Economic Quarterly. 2003;3:779–94. [In Chinese]

Yu M. Processing trade, tariff reductions and firm productivity: Evidence from Chinese firms. Economic Journal. 2015;125(585):943–88.

Kohpaiboon A. Industry 4.0 policies in Thailand. Yusof Ishak Institute Economics Working Paper No. 2020-02; 2020.

Krainara C. Thailand’s international trade policies; 2013.

Available:https://www.researchgate.net /publication/255722109

Jantarakolica K. Brand building for Thailand export products though country image. Proceeding of 16th ISBITM Conference, Bali, Indonesia; 2015.

Perkins DH, Anh VTT. Vietnam’s industrial policy: Designing policy for sustainable development. Prepared under UNDP-Harvard Policy Dialogue Papers: Policy Dialogue Paper Number-1.

World Bank. Bangladesh can boost its exports with better logistics; 2019.

Available:https://www.worldbank.org/en/news/press-release/2019/11/13/bangladesh-can-boost-its-exports-with-better-logistics

Jayadi A. Comparative advantage analysis and products mapping of Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam export products. Journal of Developing Economies. 2017;02(1):12-27. ISSN: 2541-1012.

Hassan MM. Economic development in Bangladesh: Role of export diversification, prospects and challenges. The Guardian; 2017.

Available:http://www.theguardianbd.com/economic-development-in-bangladesh-role-of-export-diversification-prospects-and-challenges/

Zaki AR, Asim M. Export diversification model–a strategic view for economic development with reference to Pakistan. IOSR Journal of Business and Management (IOSR-JBM). 2012;5(6):01-18. ISSN: 2278-487X.

Newman C, Rand J, Tarp F, Anh NTT. Exporting and productivity: Learning from Vietnam. Journal of African Economics. 2017;26(1):67–92.

DOI: 10.1093/jae/ejw021

Basher S, Gomes PA. The toll of coronavirus on our exports. The Financial Express; 2020.

Available:https://thefinancialexpress.com.bd/views/the-toll-of-coronavirus-on-our-exports-1588607346