Bangladesh and BIMSTEC: Performance Evaluation and Development Strategies

BIMSTEC is a sub regional grouping combining some geographically contiguous South Asian and ASEAN countries around the Bay of Bengal. This research identifies the development of trade performance of Bangladesh with the member countries on the basis of trade performance and providing the policies formulation to gain from the integration. It has taken the data of export and import of Bangladesh with BIMSTEC countries for 13 years from the year of 1994–1995 to 2007–08. The study has used financial ratio, percentage, mean, growth, covariance, hypothesis test etc. for analysis of data and drawing inferences. The export performance of Bangladesh with member countries has increased and the average import growth has decreased after functioning of BIMSTEC. The trade balance of Bangladesh has improved after functioning of BIMSTEC. The average trade balance has decreased after functioning of BIMSTEC. (24.11% to 21.11%) but the change of trade deficit is not significant statistically. So, for development of trade performance of Bangladesh the various measures should be taken: elimination of political disputes, removal of protectionism, outburst of other regional agreements, elimination of bureaucratic inactivity, centralization of political and economic authority, identification of new market for export, arrangement for regional transport and communications infrastructure etc.