International Journal of Research in Economics and Social Sciences

  • Year: 2015
  • Volume: 5
  • Issue: 6

Impact of Trade Liberalization on Import and Export Expansion in the Economy of Bangladesh: A computable general equilibrium (CGE) Analysis

  • Author:
  • Saieed Md Abu1, Siddique Abu Bakkar2
  • Total Page Count: 14
  • DOI:
  • Page Number: 204 to 217

1Fellow, Department of Economics, Central European University, Hungary

2Candidate, Ph.D (Economics), CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute), Czech Republic

Abstract

This paper describes the impact of trade liberalization on the import volume andexport growth of Bangladesh using the computable general equilibrium model. Paper scrutinizes the process of trade liberalization in Bangladesh and its impact on the growth and structure of exports, imports, output and other related macroeconomic variables with particular emphasis on exports and import. It also finds the positive impact of import which increase the welfare of Bangladesh, simulation result suggest that under the complete abolition of the tariff rate, the export of all sectors increase significantly. Output of agriculture and manufacturing has been increased and output of finance, service and mineral decreased. However, the social welfare and utility consumptions have also increased significantly after abolition of tariff rate. This work uses the social accounting matrix or SAM database and Standard CGE model. It concludes with the recommended policy measures which might be catalyst topromote total welfare of the country.

Keywords

Trade Liberalization, import growth, Export Expansion, CGE model, Bangladesh, SAM