International Business Shubham Patil

CCE-1 M2022099

Bangladesh
Trade Visualisation
Export:
Bangladesh export is $17.6B in 2009 and $44.4B in 2019 in the span of decade export
Increases to 152 %
Bangladesh export consist of services, Textile, Agriculture, Minerals, metals, stone,
chemical, vehicles, Machinery, Electronics and others
Bangladesh Export
Product/ Sector 2009 2019 % increase/
Decrease
Services $2.00B $6.21B 210.5 %
Textiles $13.9B $35.8B 157.6 %
Agriculture $825M $1.37B 66.1 %
Stone $43.6M $55.1M 26.4 %
Minerals $288M $38.5M -86.6 %
Metals $366M $154M -57.9 %
Chemicals $189M $292M 54.5 %
Vehicles $139M $156M 12.2 %
Machinery $83.1M $217M 161.1 %
Electronics $32M $64.7M 102.2 %
Other $22.8M $74.9M 228.5 %

Out of all product and services exported Minerals and Metals export decrease in the period
In 2009 the maximum revenue of export generated from United States of America, Germany,
France & United Kingdom. In 2019 the maximum revenue of export generated from United
States of America, Germany, France, United Kingdom, Spain, Canada, India, China etc
which shows that the export is increased in the given period.
Bangladesh major contribution is of textile in global market

Import:
Bangladesh import is $24.2B in 2009 and $67.1B in 2019 in the span of decade import
Increases to 177 %
Bangladesh import consist of services, Textile, Agriculture, Minerals, metals, stone,
chemical, vehicles, Machinery, Electronics and others
Bangladesh Import
 Product/ Sector 2009 2019 % increase/
Decrease
Services $3.40B $9.56B 181 %
Textiles $4.89B $13.1B 168 %
Agriculture $4.36B $8.84B 103 %
Stone $141M $1.51B 971 %
Minerals $2.85B $7.35B 158 %
Metals $1.43B $5.20B 264 %
Chemicals $2.54B $6.98B 175 %
Vehicles $1.18B $2.62B 122 %
Machinery $2.14B $7.18B 236 %
Electronics $1.17B $3.42B 192 %
Other $141M $1.35B 857 %

Out of all product and services imported there is no decrease in the quantity of product and
services in the period
In 2009 the maximum import from India, China, Indonesia. In 2019 the maximum import
from India, China, Indonesia, Russia, Germany etc which shows that the import is increased
in the given period.
Bangladesh spending on Textile & Services is highest in Import for the given period.

Country Profile
Introduction
Bangladesh is a lower-middle-income country, ranking as the 108th richest economy per
capita out of 133 studied. Its 163 million inhabitants have a GDP per capita of $1,855 ($4,954
PPP; 2019). GDP per capita growth has averaged 6.2% over the past five years, above
regional averages.
Bangladesh ranks as the 105th most complex country in the Economic Complexity Index
(ECI) ranking. Compared to a decade prior, Bangladesh's economy has become less complex,
worsening 5 positions in the ECI ranking. Bangladesh's worsening complexity has been
driven by a lack of diversification of exports. Moving forward, Bangladesh is positioned to
take advantage of few opportunities to diversify its production using its existing knowhow.
Bangladesh is as complex as expected for its income level. As a result, its economy is
projected to grow moderately. The Growth Lab's 2029 Growth Projections foresee growth in
Bangladesh of 3.6% annually over the coming decade, ranking in the top half of countries
globally.

Export Basket in 2019

Bangladesh exported products worth USD $44.4 billion in 2019. Exports have grown by an
annual average of 7.1% over the past five years, which has been a drag on overall economic
growth, as exports represent a shrinking segment of the economy. Non-oil exports have
grown by 7.2% annually over the past five years, outpacing the global average growth.
Imports totaled USD $67.1 billion in 2019, leaving Bangladesh with a trade deficit in goods
and services.

Export Complexity in 2019

Research from the Growth Lab finds that countries whose exports are more complex than
expected for their income level, grow faster. Growth can therefore be driven by a process of
diversifying knowhow to produce a broader, and increasingly more complex, set of goods
and services.
Bangladesh's largest goods exports are in moderate and low complexity
products, Textiles and Agriculture, respectively.

Export Growth Dynamics

Bangladesh has seen a troubling pattern of export growth, with the largest contribution to
export growth coming from low complexity products, particularly Apparel, knit and Apparel,
not knit products.
Growth in Global Market Share

Bangladesh has started the process of structural transformation. A key source of economic
growth, this process reallocates economic activity from low to high productivity sectors. It
broadly moves activities out of agriculture into textiles, followed by electronics and/or
machinery manufacturing. While Bangladesh has a presence in textile exports, its global
market share in electronics has stagnated over the previous decade.
Bangladesh's export growth in the past five years has been driven by Textiles. Bangladesh's
growth in Textiles has not been by good luck, by simply concentrating in a growing global
sector. Rather, export growth in Textiles has been driven by expanding its global market
share.

Diversification into New Products

Economic growth is driven by diversification into new products that are incrementally more
complex. Bangladesh has added 12 new products since 2004 and these products contributed
$1 in income per capita in 2019. Bangladesh has diversified into too few products to
contribute to substantial income growth.
What is the Product Space?

Our research finds that countries tend to diversify by moving into nearby and related products
or into those that require similar knowhow to build on existing capabilities. The Product
Space represents the relatedness of over 800 goods using real world data.
For example, countries that produce textiles (green) are highly likely to be able to produce
other textiles, but share few links to the knowhow required to produce machinery (blue).
The Product Space helps to define paths to diversify a country's economy based on the
connectedness of its knowhow.
Bangladesh's Product Space

Countries are more successful in diversifying when they move into production that requires
similar knowhow and builds on existing capabilities.
Here, Bangladesh's Product Space illustrates the relatedness of its exports and potential paths
to diversify its economy.
Recommended Strategic Approach

Bangladesh’s existing knowhow affords a few opportunities to diversify into related products.

In diversifying its economy, Bangladesh may consider a:
Strategic Bets Approach
Few nearby opportunities call for coordinated long jumps into strategic areas with future
diversification potential.
Potential Growth Opportunities

Countries grow by diversifying into new products of increasing complexity. Strategic new
products aim to balance:

 Distance to existing capabilities: lower distance (close to 0) signifies a product is

“nearby” to existing knowhow.
 Complexity: more complex products tend to support higher wages.
 Opportunity gain for future diversification: higher values hold more linkages to other
high-complexity products, opening more opportunities for continued diversification.

New Product Opportunities

Strategic Bets Approach

Balanced Portfolio
Given its current exports, some of the sectors with high potential for new diversification in
Bangladesh are: Electrical machinery and equipment and Industrial Machinery. Scroll
through the table for additional possibilities
Bangladesh in Summary

ECONOMIC STRUCTURE
5
BANGLADESH'S COMPLEXITY HAS WORSENED 5 POSITIONS IN THE PAST
DECADE.
12
NEW PRODUCTS
12 NEW PRODUCTS WERE ADDED IN THE LAST 15 YEARS.
FUTURE DYNAMICS
BANGLADESH IS EXPECTED TO GROW 3.6% PER YEAR OVER THE NEXT 10
YEARS.
PATH TO DIVERSIFICATION
STRATEGIC BETS APPROACH
WITH FEW NEARBY OPPORTUNITIES, GROWTH CAN BE PURSUED BY
MAKING LONGER JUMPS INTO STRATEGIC AREAS WITH FUTURE
DIVERSIFICATION POTENTIAL.