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Devaluation in Bangladesh: Conflicts between Trade Balance Improvement and Growth

Author

Listed:
  • Hossain , M. Manir

    (Ph D student in the Australian National University)

Abstract

Born in 1971, Bangladesh was an inward-looking economy until 1986 when the government initiated the economic reforms to rationalize its trade regime and exchange rate management.1 The objective was to increase external competitiveness with the change to outward-looking industrial and trade policies. Bangladesh has a reasonably large foreign sector as measured by the ratio of its trade to GDP. Table I shows that, by 1994, Bangladesh's exports had risen to 10.3 percent of GDP, up from 2.9 in 1975, and imports to 18.3 per cent of GDP (from 12.9 percent in 1975). In value terms, exports rose more than imports during this period.

Suggested Citation

  • Hossain , M. Manir, 1995. "Devaluation in Bangladesh: Conflicts between Trade Balance Improvement and Growth," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 23(3-4), pages 149-172, Sept-Dec.
    • Handle: RePEc:ris:badest:0348
    as

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    More about this item

    Keywords

    Imports; Supply and demand; Maximum likelihood estimation; Elasticity of demand; Market prices; Estimation methods; Balance of trade;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines

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