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The Impact of Trade Liberalization on Poverty Reduction in Bangladesh: A Computable General Equilibrium (CGE) Analysis

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  • Ziaur Rahman

Abstract

This paper examines the impact of trade liberalization on poverty reduction in Bangladesh by using Computable General Equilibrium (CGE) analysis. By using CGE analysis we see that WTO and SAFTA have a positive impact of increasing in household welfare in Bangladesh through increasing in household consumption in Bangladesh. The major findings of two simulation results show that under the complete abolition the tariff rate, the exports of all sectors increase significantly. Output of mineral sector, social service sectors decreases; however, consumption increases for all sectors and import increase in all sectors except financial and service sectors. The simulation result suggests that the liberalization of trade policy can be applicable in the case of Bangladesh because liberal trade policy helps to reduce the poverty in Bangladesh and improve social welfare by increase in consumption.

Suggested Citation

  • Ziaur Rahman, 2014. "The Impact of Trade Liberalization on Poverty Reduction in Bangladesh: A Computable General Equilibrium (CGE) Analysis," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 4(4), pages 240-253.
    • Handle: RePEc:asi:ajoerj:v:4:y:2014:i:4:p:240-253:id:3788
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