IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Trade liberalization and industry performance in Bangladesh

  • Hassan, M. Kabir
  • Isik, Ihsan
  • Mamun, Abdullah

This paper analyzes trade liberalization's impact on Bangladesh's manufacturing sector performance. Using firm level input and output data and employing a nonparametric data envelopment analysis (DEA), we calculate technical, pure technical and allocative efficiencies for a sample of 82 firms collected over two periods of time: 1993 and 1998. Then, applying a Malmquist index method, we calculate indices of total factor productivity change and decompose them into technological change, technical efficiency change and scale efficiency change. Our results show that the majority of Bangladeshi manufacturing firms experienced a positive total factor productivity growth between 1993 and 1998, averaging 29% over a five-year period. Export-oriented firms have performed better than import-oriented firms in improving their technical efficiency relative to the best-practice firms in their own sub-group. When these results are compared with the official statistics on the output performance of manufacturing firms, we can conclude that trade liberalization in the 1990s did not adversely affect the Bangladeshi manufacturing industry.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.sciencedirect.com/science/article/B6V82-4YJCKPC-3/2/9332aec6d80910f5f6c34bee8256ae2a
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Elsevier in its journal Journal of Policy Modeling.

Volume (Year): 32 (2010)
Issue (Month): 3 (May)
Pages: 399-417

as
in new window

Handle: RePEc:eee:jpolmo:v:32:y::i:3:p:399-417
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505735

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Dani Rodrik, 1992. "The Limits of Trade Policy Reform in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 87-105, Winter.
  2. Tybout, James & de Melo, Jamie & Corbo, Vittorio, 1991. "The effects of trade reforms on scale and technical efficiency : New evidence from Chile," Journal of International Economics, Elsevier, vol. 31(3-4), pages 231-250, November.
  3. James Levinsohn & Amil Petrin, 2000. "Estimating Production Functions Using Inputs to Control for Unobservables," NBER Working Papers 7819, National Bureau of Economic Research, Inc.
  4. Mark J. Roberts & James R. Tybout, 1991. "Size Rationalization and Trade Exposure in Developing Countries," NBER Chapters, in: Empirical Studies of Commercial Policy, pages 169-200 National Bureau of Economic Research, Inc.
  5. Yang, Ji-Chung, 2006. "The efficiency of SMEs in the global market: Measuring the Korean performance," Journal of Policy Modeling, Elsevier, vol. 28(8), pages 861-876, November.
  6. Rahman, Mustafizur, 1997. "Recent policy of trade liberalization in Bangladesh and issues of regional cooperation in South Asia," Journal of Asian Economics, Elsevier, vol. 8(1), pages 117-141.
  7. Tybout, James R, 1992. "Linking Trade and Productivity: New Research Directions," World Bank Economic Review, World Bank Group, vol. 6(2), pages 189-211, May.
  8. Isik, Ihsan & Kabir Hassan, M., 2003. "Financial deregulation and total factor productivity change: An empirical study of Turkish commercial banks," Journal of Banking & Finance, Elsevier, vol. 27(8), pages 1455-1485, August.
  9. Tybout, James R. & Westbrook, M. Daniel, 1995. "Trade liberalization and the dimensions of efficiency change in Mexican manufacturing industries," Journal of International Economics, Elsevier, vol. 39(1-2), pages 53-78, August.
  10. Isik, Ihsan & Hassan, M. Kabir, 2002. "Technical, scale and allocative efficiencies of Turkish banking industry," Journal of Banking & Finance, Elsevier, vol. 26(4), pages 719-766, April.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eee:jpolmo:v:32:y::i:3:p:399-417. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.