Bangladesh-India bilateral trade: causes of imbalance and measures for improvement

Rahman, Mohammad Mafizur (2005) Bangladesh-India bilateral trade: causes of imbalance and measures for improvement. In: 3rd Annual Conference of the International Academy of Business and Economics (IABE-2005), 16-19 Oct 2005, Las Vegas, USA.

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Abstract

[Abstract]: Currently India is the 2nd largest trading partner of Bangladesh, and India’s position is at the top for Bangladesh’s imports trade. So the study underscores the trend, structure and current picture of Bangladesh-India trade. Bangladesh’s trade with India increased tremendously especially in the 1990s. The average annual growth rates of Bangladesh’s trade with India, during 1980 to 1995, were much higher than those with the SAARC and the world. However, Bangladesh has always been trade deficit with India, and recently it has increased exponentially. Limited export base, backward industries, inadequate infrastructure, lower productivity in Bangladesh, appreciation of Bangladesh’s Taka against Indian Rupee, earlier and faster trade liberalization program in Bangladesh compared to India, tariff and non-tariff barriers (NTBs) imposed by the Indian government, huge illegal trade, diversified exports and technologically advanced industrial base of India are identified as the main reasons of this huge trade imbalance. Structural and policy measures such as sound physical, social and economic infrastructure, superior product quality, export diversification, sufficient institutional facilities for banking, credit and insurance, improved law and order situation, labor unrest free environment, an honest and efficient administration, continuous political stability, huge domestic and foreign investments, joint ventures in Bangladesh with buy back arrangements, competitive devaluation of the Bangladesh currency against the Indian currency, removal of illegal trade, tariff and NTBs- free entry of Bangladesh’s exports to Indian market are suggested to improve this trade deficit. Also cordial and productive cooperation between these two nations is crucial to materialize these measures.


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Item Type: Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed: Yes
Item Status: Live Archive
Additional Information: No evidence of copyright restrictions.
Depositing User: Dr Mafiz Rahman
Faculty / Department / School: Historic - Faculty of Business - Department of Economics and Resource Management
Date Deposited: 31 Aug 2010 05:06
Last Modified: 02 Jul 2013 23:28
Uncontrolled Keywords: Bangladesh-India, blateral trade, trade imbalance
Fields of Research (FOR2008): 14 Economics > 1402 Applied Economics > 140210 International Economics and International Finance
URI: http://eprints.usq.edu.au/id/eprint/6060

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