The purpose of this study is to find out the determinants and issues influencing Bangladeshi textile and clothing (T&C) exports. A unique data set has been generated and used to estimate the panel gravity model of Bangladeshi T&C export flows to a total of its 40 trade partners over a period of 27 years, spanning from 1990 to 2017. The results show that the gross domestic product (GDP), real exchange rate and per capita GDP of the importers have appeared to be major determinants of Bangladesh’s textile exports trade. Also, Bangladesh and World Trade Organization membership have a strong positive significant impact on T&C exports. The geographical distance has no strong significant effect on textile trading. It is found that European Union and North American Free Trade Agreement countries are the two important export destinations for the garments of Bangladesh. This study is a novel and significant contribution for a couple of reasons: First, Bangladesh’s major trading partners are covered in this study sample. Second, the article’s focus on the gravity panel data analysis fills up a major research gap on the determinants of exports of the Bangladeshi garments. This study will thus pave the new avenues for further research in future.
The purpose of this research is to study the determinants of export, import and overall trade performance. The article employed the panel gravity model along with the analytical approaches of the fixed-effects, random-effects, Poisson Pseudo-Maximum-Likelihood (PPML) and Heckman selection models. This analysis is based on a panel data set from 1989 to 2015 (27 years) for a total of 20 selected largest leather importing partners. The findings are consistent with the Heckscher–Ohlin (H–O) theory, meaning that Bangladesh could chase for the comparative advantage in the leather industry through the effective planning and efficient utilization of its abundant population of 163 million. It is demonstrated that the wealthier nations are likely to trade in the Bangladeshi leather sector. But the key problem in the ways of trade is the presence of high trade and transport costs. Among the major causes of high-trade costs in Bangladesh are the cumbersome and complex cross-border trading practices, which also increase the possibility of corruption. Moreover, the trading of leather products is negatively influenced by the COVID-19. These problems and issues need to be addressed to facilitate Bangladesh’s leather exports. Also, Bangladesh is a founding member of China’s Belt and Road Initiative (BRI). Exporting to Chinese consumer markets and using network connectivity to boost leather trade with other participating countries in the BRI would create a considerable growth potential for Bangladesh. To this end, the issue of technological developments and research innovations could be prioritized. This work provides both industrial and policy directions for future research on trade of leather products by means of an application of the gravity model. There are some methodological innovations of the model. The concluding remarks have generated some insights and lessons that would be useful in the development of leather trade across the world.
Among various stimulus for growth in economy, Foreign Direct Investment (FDI) is being considered as a significant one even though there are lot of studies that shows otherwise. The relation of FDI and economic growth is been studied vigorously, but there is hardly any study in-depth about Bangladesh which can give us a rich insight into economic growth and bring out other factors to the picture of economic growth. To do that, this study explores the impact of FDI inflows on economic growth in Bangladesh in a period of 1989-2017 employing time series analysis techniques that recognize the problem of nonstationary. To ensure the regression is valid the Unit root test and Cointegration test is been used. Findings from empirical results show as FDI inflow, government consumption, population size and joining WTO have a positive impact on economic growth. Also, the exchange rate seems to be less significant in economic growth.
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