Analysis of Trade Pattern, Market Access and Trade Potential in Bangladesh

Abstract

This chapter analyzes trade pattern, evolving markets and trade potential in Bangladesh. The estimated revealed comparative advantage (RCA) and specialized Balassa Indexes (SBIs) suggest that Bangladesh has been enjoying high revealed comparative advantage in knitted garments, woven garments, jute and jute goods, other textile articles, frozen fish, leather, footwear, headgear and parts. The analysis indicates that attention needs to be given not only on revealed comparative advantage of products for specialization, but also on diversification of export items and market destinations. Since RCA cannot tell about future potentials of exports, a trade potential index (TPI) has been estimated, which indicates that Bangladeshi products have huge potential in some countries for which Bangladesh needs to comply with sanitary and phytosanitary standards of those countries.