Abstract
This paper aims to examine export, import and trade intensity, export specialization index, Herfindahl-Hirschman index for bilateral concentration and diversification indices to analyze the specializations, structure and trends of deficit in bilateral trade between Bangladesh and China from 1995 to 2018 and policy recommendations in this regard. The results reveal that the gap of export and import intensity between Bangladesh and China is widening rapidly perennial. The export specialization indices expose very significant outcomes where among the analyzed 16 sectors; 6 sectors exhibit high specialization, 3 sectors demonstrate medium, 3 sectors exhibit low and the rest of the 4 sectors disclose no specialization for Bangladesh’s export to China. The findings of the Herfindahl-Hirschman Index (HHI) reveal that from 1995 to 2010 the export of Bangladesh to China concentrated within few sectors but from the year 2011 to 2018 the export has been reclassifying steadily into diversification. The overall analysis of the indices suggests the necessity to be improved of the level of intra-industry trade between China and Bangladesh. Moreover, emphasis should be given to the sectors having a high specialization that endure the capacity to narrow the trade deficit. Furthermore, the export baskets of Bangladesh to China require to be diversified. Hereafter, various measures and implications are also suggested in the policy recommendation for further improvement.
Highlights
What does it tell us? We can think of the trade intensity index as a uniform export
4.0 not suffer from any ‘size’ bias, so we can compare the statistic across regions, and over
Definition: The trade intensity statistic is the ratio of two export shares
Summary
What does it tell us? We can think of the trade intensity index as a uniform export. 7.0 whether or not a region exports more (as a percentage) to a given destination than the. We can think of the trade intensity index as a uniform export. 7.0 whether or not a region exports more (as a percentage) to a given destination than the. 4.0 not suffer from any ‘size’ bias, so we can compare the statistic across regions, and over. 3.0 time when exports are growing rapidly. Definition: The trade intensity statistic is the ratio of two export shares. The numerator is the share of the destination of interest in the exports of the region under study. The denominator is the share of the destination of interest in the exports of the world as a whole. Range of values: Takes a value between 0 and +∞. Values greater than 1 indicate an ‘intense’ trade relationship
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