1

University of Barishal

MAJOR IMPORT AND EXPORT RELATED ARTICLES OF BANGLADESH

Course Title : International Trade

Course Code : ECON 306
Submission Date : 08.10.2023
Submitted By: Group E
Organizer: Maisha Maliha
3rd Year
1st Semester
Session (2021-2022)
Department of Economics
University of Barishal

Submitted To: Marzia Nomi

Assistant Professor
Department of Economics
University Of Barishal
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INDEX

Group Member Roll Article Name Page Number

Ahnaf Tahmid 20 ECO 046 1. Exports, imports and sustainable 3
economic growth in Bangladesh

Md. Sakib 20 ECO 047 2. The Dynamics of Relationship among 7

Mahmud Export, Import and Economic Growth
in Bangladesh

Diti Moulick 20 ECO 048 3. Impact of export and import on value 9

addition of ready-made garments
sector in Bangladesh

Sarmin Akter 20 ECO 049 4. Post COVID-19 Impact on Export- 14

Shathi Import Industry of Bangladesh: A Case
Study on RMG Sector

Anika Raisa 20 ECO 050 5. Long Run Relationship between 16

Mahabub Export and Import of Bangladesh:
Growth Trend, Cointegration and
Causality Analysis

Abdullah Zubyar 20 ECO 051 6. Impact of Exchange Rate Volatility on 21

Abed Trade in Bangladesh: A Study
Summary

Erona Ahmed 20 ECO 052 7. Toward Bracketing the Seasonal Export- 23

Import of Bangladesh: A Time Series
based Analytical Approach

Maisha Maliha 20 ECO 053 8. Export, Import and Inflation: A Study 25

on Bangladesh

Ummay Salma 20 ECO 054 9. Effect of Agricultural Exports and 29

Hia Imports on Economic Growth in
Bangladesh: A Study on Agribusiness
Supply Chain

Md. Yousuf Alam 20 ECO 055 10. A Study on Export Receipts and Import 32
Sajeeb Payments of Goods and Services the Analysis
for Bank of Bangladesh
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1. Exports, imports and sustainable economic growth in

Bangladesh
Introduction
The research titled “Exports, imports and sustainable economic growth in Bangladesh”
investigates the relationship between trade, specifically exports and imports, and economic
growth in Bangladesh. The study utilizes the Autoregressive Distributed Lag (ARDL) framework
to examine the causal relationships between these variables.
The research builds upon the well-established export-led growth (ELG) hypothesis, which
suggests that export expansion and trade openness can act as drivers of economic growth. It also
explores the growthled exports (GLE) hypothesis, which posits that economic growth can
stimulate exports. Additionally, the study considers the import-led growth (ILG) hypothesis,
which suggests that imports can contribute to economic growth by facilitating access to raw
materials and advanced foreign machinery and equipment.
To investigate these relationships, the researchers collect data on exports, imports, and economic
growth in Bangladesh over a specific time period. The ARDL framework is then applied to
estimate the long-run and short-run relationships between these variables. The bound test, a
statistical test, is employed to determine the presence of a long-run relationship among the
variables.
The findings of the research indicate significant causal relationships between exports, imports,
and economic growth in Bangladesh. The study supports the ELG hypothesis, highlighting the
positive impact of exports on economic growth. It also identifies evidence for the GLE
hypothesis, suggesting a reverse causal flow from economic growth to exports. Furthermore, the
research reveals the importance of imports in driving economic growth, supporting the ILG
hypothesis.
The research contributes to the existing literature on the nexus between trade and economic
growth in Bangladesh. By examining the specific roles of exports and imports, the study
provides insights into the mechanisms through which trade can foster sustainable economic
development in the country.
Methodology
The used in the study “Exports, imports and sustainable economic growth in Bangladesh”
involves the application of the Autoregressive Distributed Lag (ARDL) framework to examine
the causal relationship between trade and economic growth, specifically focusing on the role of
both exports and imports on economic growth in Bangladesh.
The ARDL framework is a widely used econometric technique that allows for the analysis of
both long-run and short-run relationships between variables. It is particularly suitable for small
sample sizes and when the variables of interest are integrated of different orders (i.e., some
variables are stationary while others are non-stationary).
 4

To conduct the analysis, the researchers collected data on exports, imports, and economic growth
in Bangladesh over a specific time period. The time period and the specific variables used in the
analysis are not mentioned in the provided parts of the document.
The ARDL model is then specified based on the collected data. The long-run relationship
between the variables GDP, exports, and imports is represented by a set of equations, which
include the natural logarithm of the variables and their lagged values. The number of lags in the
model is determined based on criteria such as the Akaike Information Criterion (AIC) and the
Schwarz Information Criterion (SIC).
The researchers estimate the ARDL model using the collected data and perform the bound test,
which is a statistical test to determine the presence of a long-run relationship among the
variables. The bound test allows for the examination of both one-way and two-way causal
relationships between the variables.
The estimated results of the ARDL model are then presented and analyzed in the study. The
results provide insights into the causal relationships between exports, imports, and economic
growth in Bangladesh.
It is important to note that the specific details of the methodology, such as the data collection
process, the time period covered, and the specific equations used in the ARDL model, are not
provided in the given parts of the document.
Findings
The findings of the research “Exports, imports and sustainable economic growth in Bangladesh”
suggest the presence of significant causal relationships between exports, imports, and economic
growth in Bangladesh. The study utilizes the Autoregressive Distributed Lag (ARDL) framework
to examine these relationships.
The empirical results support the well-known export-led growth (ELG) hypothesis, indicating
that exports play a crucial role in driving economic growth in Bangladesh. The positive and
significant coefficients associated with the exports variable in the ARDL model suggest that an
increase in exports leads to an increase in economic growth.
Furthermore, the study also reveals the presence of growth-led exports (GLE) hypothesis,
indicating a reverse causal flow from economic growth to exports growth. This suggests that
higher levels of economic growth can stimulate exports in Bangladesh.
In addition to the ELG and GLE hypotheses, the research findings also highlight the significance
of imports in driving economic growth. The study identifies a significant short-run and long-run
causality from imports towards economic growth, supporting the presence of import-led growth
(ILG) hypothesis. This suggests that imports, by providing access to raw materials and advanced
foreign machinery and equipment, contribute to domestic production and economic growth in
Bangladesh.
Overall, the findings of the research indicate that both exports and imports play crucial roles in
driving sustainable economic growth in Bangladesh. The study emphasizes the importance of
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trade in harnessing economic growth and suggests that international trade will continue to be a
key driver of economic development in the country.
Literature review
The literature review in the research “Exports, imports and sustainable economic growth in
Bangladesh” provides an overview of previous studies that have examined the relationship
between trade and economic growth in Bangladesh. The review highlights the existing literature
on the nexus between exports, imports, and economic growth in the country.
The review begins by discussing the well-known export-led growth (ELG) hypothesis, which
suggests that export expansion and trade openness can act as engines of economic growth.
Several studies are cited to support this hypothesis, including research on the experiences of
countries like Japan, South Korea, Hong Kong, Singapore, Taiwan, Malaysia, Thailand, and
China. These studies provide strong evidence for the positive impact of exports on economic
growth.
The review also acknowledges the presence of the growth-led exports (GLE) hypothesis, which
suggests that economic growth can stimulate exports. Various studies are cited to support this
hypothesis, including research that utilizes econometric techniques such as Granger causality
tests, cointegration, and error correction models. These studies provide empirical evidence for
the bidirectional causality between exports and economic growth.
Furthermore, the literature review highlights the import-led growth (ILG) hypothesis, which
suggests that imports can contribute to economic growth by facilitating access to raw materials
and advanced foreign machinery and equipment. Studies are cited to support this hypothesis,
including research that emphasizes the role of imports in enhancing domestic production and
productivity.
The review also mentions the use of different econometric techniques in previous studies, such
as OLS regression, Granger causality tests, cointegration, and error correction models. These
techniques have been employed to analyze the causal relationships between exports, imports, and
economic growth in Bangladesh.
Overall, the literature review provides a comprehensive overview of the existing research on the
nexus between exports, imports, and economic growth in Bangladesh. It highlights the empirical
evidence supporting the ELG, GLE, and ILG hypotheses and emphasizes the importance of trade
in driving sustainable economic growth in the country.
It is important to note that the specific studies cited and the detailed analysis of the literature are
not provided in the given parts of the document, and further information is required to fully
understand the literature review in the research.
Conclusion
In conclusion, the research on “Exports, imports and sustainable economic growth in
Bangladesh” sheds light on the relationship between trade and economic growth in the context of
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Bangladesh. The study utilizes the Autoregressive Distributed Lag (ARDL) framework to
examine the causal relationships between exports, imports, and economic growth.
The findings of the research support the well-known export-led growth (ELG) hypothesis,
indicating that exports play a crucial role in driving economic growth in Bangladesh. The study
reveals a positive and significant relationship between exports and economic growth,
highlighting the importance of export expansion for sustainable development.
Furthermore, the research identifies the presence of the growth-led exports (GLE) hypothesis,
suggesting that economic growth can stimulate exports. This bidirectional relationship between
economic growth and exports underscores the dynamic nature of trade and its impact on the
overall economy.
Importantly, the study also emphasizes the significance of imports in driving economic growth in
Bangladesh. The import-led growth (ILG) hypothesis is supported, indicating that imports
contribute to domestic production and productivity by providing access to raw materials and
advanced foreign machinery and equipment.
Overall, the research underscores the crucial role of trade, both exports and imports, in fostering
sustainable economic growth in Bangladesh. The findings highlight the interdependence between
trade and economic development, emphasizing the need for policies that promote export-oriented
industries and facilitate access to imports.
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2. The Dynamics of Relationship among Export, Import and

Economic Growth in Bangladesh
The research paper "The Dynamics of Relationship among Export, Import and Economic Growth
in Bangladesh" by Nurul Mohammad Zayed et al. (2020) examines the relationship between
export, import, and economic growth in Bangladesh. The authors use a time series dataset from
1979 to 2018 and employ a variety of econometric techniques, including the Augmented Dickey-
Fuller (ADF) test, the Johansen test, and the Vector Error Correction Model (VECM), to analyze
the data.
The authors find that there is a long-run and short-run relationship between export and economic
growth in Bangladesh. Export directly affects economic growth, while import indirectly affects
economic growth through its impact on export. The findings suggest that both export and import
play an important role in promoting economic growth in Bangladesh.
Literature review
The authors review the existing literature on the relationship between export, import, and
economic growth. They note that the literature is mixed, with some studies finding a positive
relationship between export and economic growth, while others find a negative relationship.
Some studies also find that import has a positive impact on economic growth, while others find
that it has a negative impact.
Methodology
The authors use a time series dataset from 1979 to 2018 to analyze the relationship between
export, import, and economic growth in Bangladesh. The variables used in the study are:
Export: Total exports of goods and services
Import: Total imports of goods and services
GDP: Gross domestic product
The authors use a variety of econometric techniques, including the ADF test, the Johansen test,
and the VECM, to analyze the data.
Findings
The authors find that there is a long-run and short-run relationship between export and economic
growth in Bangladesh. Export directly affects economic growth, while import indirectly affects
economic growth through its impact on export. The findings suggest that both export and import
play an important role in promoting economic growth in Bangladesh.
Objectives
The main objective of the study is to examine the relationship between export, import, and
economic growth in Bangladesh. The authors also aim to identify the long-run and short-run
dynamics of the relationship between these variables.
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Conclusion
The findings of the study have important implications for policymakers in Bangladesh. The
findings suggest that the government should focus on promoting export growth in order to boost
economic growth. The government should also focus on creating an environment that is
conducive to import, as import plays an important in promoting export growth.
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3. Impact of Export and Import on Value Addition in the Ready-

Made Garments Sector in Bangladesh
1.Executive Summary:

The ready-made garments (RMG) sector is a significant contributor to Bangladesh's economy,

with a substantial reliance on export and import activities. This research report delves into the
intricate relationship between exports, imports, and value addition in the RMG sector of
Bangladesh. By analyzing data, trends, and conducting interviews with industry experts, the report
provides insights into the impact of these international trade activities on the sector's value
addition.

2.Introduction:

2.1 Background:

Bangladesh's RMG industry is one of the world's largest, accounting for a substantial share of the
country's GDP and employment. It heavily depends on international trade, with exports and
imports playing a vital role in its operations. Bangladesh has achieved the prestige of being the
second biggest textile exporter and one of the leading. Textile manufacturers in the world (Khan
& Ullah, 2017). The ready-made garment (RMG) sector is a

prominent contributor to GDP growth, employment generation, and foreign currency inflow in
Bangladesh. The Statistics of Bangladesh Garment Manufacturers and Exporters Association
(BGMEA, 2020) reported that the RMG sector contributed around 83% of total export earnings
with a value of over $30.61 billion in2017-2018. Moreover, RMG and the corresponding textile
industry generated around 4.5 million domestic jobs in 2018 (Akter, 2019). There is no doubt that
the RMG sector contributes significantly more to the Bangladeshi economy than other economic
sectors therefore, more attention should be drawn to ensuring the long-term sustainability of such
an important sector.

2.2. Objectives:

 Examine the trends in exports and imports within Bangladesh's RMG sector.
 Analyze the factors influencing value addition in the RMG sector.
 Evaluate the impact of exports and imports on value addition.
 Suggest recommendations for optimizing value addition in the sector.

3. LITERATURE REVIEW:

3.1 An overview of RMG value addition:

The value addition from the RMG sector of Bangladesh was demonstrated by a trifling number of
papers, typically, Dowlas (1998) explained the contribution of the RMG sector and how it added
 10

value connecting with the effects of the Agreement on Textiles and Clothing (ATC) of the Uruguay
Round under GATT 1994, low price of Bangladesh apparel products attracted export in the global
market (Berik & Vander Mullen Rodgers, 2009), how entrepreneurs contributed to stimulate RMG
value addition (Shoma, 2017), the value addition was higher than human resource in Bangladesh
between 2013 and 2017 (Chowdhury teal., 2018), and geographical diversification created an
opportunity for creating value in the RMG sector in Bangladesh (Hossain et al., 2019). Although
Bangladesh’s RMG sector has a crucial and dominating role in the world market, the research
areas on prospective value addition and future growth have been ignored by researchers. Other
competitive neighboring countries, for instance, Pakistan has a significant amount of research
work on the Pakistani RMG sector’s value creation (Ahmed, 2008; Hanif & Jafri, 2008; Khan
&Khan, 2010; Kazmi & Takala, 2014; Ahmad & Mohammad, 2019; Javed & Atif, 2019), the
export value of Iranian textile was insignificant with a constant trend (Shafaei, 2009), India with
an expectation to capture the global market by increasing number of units into value addition fields
(Chavan, 2001), on the other hand, Kelama (2009) recommended to high value-added products in
Sri Lanka. One significant finding from the study of Wan Ahmad et al. (2007), refereeing the
textile industry as a “waste saving” industry. While these nations also implied very insignificant
creating value through exports. The textile or ready-made garment sector of these economies is in
a vulnerable situation due to several internal socio-economic crises, such as scarcity of raw
materials, devaluation of the local currency, excessive external debt, and political instability.
However, researchers understood the revitalization of the sector and contributed studies on how to
increase the export of the textile and apparel industry, backward linkage production through
domestic raw materials, and structural changes. Part of the studies was based on empirical analysis
by running through time-series data and preparing a forecast. There was an identical casein
Bangladesh regarding the availability of data on value addition.

3.2. Time series analysis from RMG data:

There were only a few papers on determining the relationship among different factors in the
garments sector, such as garments labor productivity, export earning, export competitiveness,
economic growth, textile sector, and CO2 emission (Islam, 2020). We found regarding
Bangladesh’s RMG export and economic growth that the autoregressive distributed lag model was
used to interpret the direction level of those two variables. The results illustrate that RMG export
had significantly improved the economic growth rate both in the short and long run. Moreover,
there were other papers found in the determination of measuring associations of the RMG sector
and other factors, such as labor productivity, export competitiveness, economic growth and textile
industries, environmental impacts from textile and clothing industries, and so on. The studies were
conducted from the neighboring Asian countries of Bangladesh, for instance, India, China, Egypt,
Pakistan, Indonesia, and Vietnam

4.Methodology:

4.1. Data Collection:

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Data for this study was collected through a combination of primary and secondary sources. Primary
data was obtained through structured interviews with industry experts, while secondary data was
collected from government reports, trade statistics, and academic publications.

4.2. Data Analysis

Statistical tools and econometric models were employed to analyze the data and establish
correlations between exports, imports, and value addition in the RMG sector.

5.Findings:

5.1. Value Addition in the RMG Sector:

Definition of Value Addition:

 Value addition in the RMG sector refers to the process of increasing the value of a product
through various stages of production, design, and marketing.

5.2 Factors Influencing Value Addition:

 Efficient supply chain management.

 Technological advancements in production.
 Skilled labor force.
 Product diversification and design innovation.
 Compliance with international standards and regulations.

5.3. Export and Import Trends in the RMG Sector:

Export Trends:

 Bangladesh is one of the world's top RMG exporters, with a significant share in global
garment exports.
 Exports primarily target markets in Europe and North America.
 The sector has experienced fluctuations in export growth due to factors like global
economic conditions and trade policies.

Import Trends:

 The RMG sector heavily relies on imports for raw materials, machinery, and accessories.
 The cost of imports is a major component of the sector's production expenses.
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 Imports are affected by currency exchange rates, trade agreements, and international trade
regulations.

5.4. Factors Influencing Value Addition:

Labor Productivity:

The availability of a large, low-cost labor force is a critical factor influencing value addition in
the RMG sector. Labor productivity improvements can significantly enhance value addition.

Technological Advancements:

Investments in modern machinery and technology can improve production efficiency, product
quality, and value addition.

Supply Chain Management:

Efficient supply chain management, including inventory control and procurement practices, can
reduce lead times and enhance value addition.

5.5. Impact of Exports and Imports on Value Addition:

Positive Impact:

Exports provide revenue and foreign exchange, allowing the RMG sector to invest in
modernization, capacity expansion, and training. Imports of high-quality raw materials and
machinery also improve product quality and production efficiency.

Negative Impact:

Excessive reliance on imported materials and machinery can expose the sector to supply chain
disruptions and currency fluctuations. Additionally, a heavy focus on export orders can lead to
limited diversification and lower value addition.

6.Challenges and Opportunities:

6.1 Challenges:

 Fluctuating global demand.

 Competition from other garment-exporting countries.
 Dependence on imports for critical inputs.

6.2 Opportunities:

 Diversification into high-value product segments.

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 Investing in research and development for innovation.

 Strengthening trade relations and agreements.

7.Recommendations:

7.1. Diversify Export Markets:

 Explore emerging markets to reduce reliance on traditional markets.

 Develop strategies to penetrate new market segments.

7.2 Promote Innovation:

 Invest in research and development to create unique products.

 Encourage collaborations with design and fashion institutes.

7.3 Enhance Supply Chain Efficiency:

 Implement advanced supply chain management systems.

 Reduce lead times and production costs.

7.4 Government Support:

 Provide incentives for technology adoption and skills development.

 Facilitate trade agreements that benefit the RMG sector.

8.Conclusion:

The RMG sector in Bangladesh is intricately connected to international trade, with exports and
imports significantly impacting its value addition. A balanced approach, focusing on
diversification, skill development, technology adoption, and supply chain management, can help
optimize value addition while ensuring sustainable growth in the sector. Bangladesh's RMG
industry remains a vital contributor to the country's economy, and strategic measures are essential
to maintain its competitive edge in the global market.
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4. Post COVID-19 Impact on Export-Import Industry of

Bangladesh: A Case Study on RMG Sector
The report discusses the growth and challenges of Bangladesh's Ready-Made Garments (RMG)
sector, with a focus on the impact of COVID-19. Precisely speaking-
Global competition in the RMG sector is intensifying, with potential competitors like Vietnam
and Mexico emerging. The study emphasizes the need for Bangladesh to adapt to economic
challenges and maintain its position in the global RMG market. The import industry in
Bangladesh involves various documentation and regulations, with distinctions for commercial
importers and private industrial consumers.Export is crucial for Bangladesh's economy, and the
country is working to overcome barriers to export growth.
Literature review:
The COVID-19 pandemic has significantly disrupted economic activities in Bangladesh,
impacting the Ready-Made Garments (RMG) industry and overall growth. Lockdowns have
affected supply and demand, reducing production, employment loss, and uncertainty.
In FY22, despite global uncertainties, Bangladesh's RMG exports reached a record high of
$42.61 billion, contributing 9.25% to GDP. The government's support and Bangladesh Bank
played key roles in this growth, although challenges such as the Russia-Ukraine war, global
energy price hikes, and inflation in export destinations may slow down this momentum.
The RMG sector's export earnings in the last quarter of FY22 were $11,184.76 million,
surpassing the quarterly target by 26.99%. Woven garments and knitwear were the main
contributors, with non-RMG products also playing a role.
Importing raw materials accounted for a significant portion of RMG costs, totaling $5,139.17
million in April-June FY22, making up 45.95% of total RMG export earnings. Consequently, net
exports from the RMG sector reached $6,045.59 million in the fourth quarter, showing growth
compared to the previous quarter and the same period in the previous year.
Methodology :
Traditional econometric methodology was followed in this paper. Cross-series data with linear
regression equation methodology was used for this research.
After creating the framework, data was analyzed by SPSS software in this report to calculate
correlation and regression analysis.
Objectives:
Bangladesh has transformed its economy, particularly through investment in the RMG sector,
and achieved middle-income status. The study's objectives include evaluating export and import
measures, assessing their impact, exploring the relationship between export and import factors,
and analyzing the effects of COVID-19 on the sector.
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Findings:
Bangladesh's RMG sector grew from $10,000 in 1978 to $34 billion in exports by FY 2018-
2019, making it the world's second-largest exporter of garments.However, the sector faced
significant losses, approximately $6 billion per year, due to order cancellations during the
COVID-19 pandemic. Lockdowns imposed to combat COVID-19 had a severe impact on the
country's economy and various sectors. Bangladesh recorded its first COVID-19 case in March
2020, with a rapid increase in cases by June. Imports increased in Bangladesh in March 2023,
and total exports expanded by 12.7% in March 2023. The RMG and remittances sectors are
crucial contributors to Bangladesh's GDP, but the pandemic led to job losses and order
cancellations.
Conclusion:
In conclusion, the COVID-19 pandemic had a significant impact on Bangladesh's readymade
garments (RMG) industry, affecting both export and import performance. The study showed that
COVID-19 resulted in profit compression for RMG exports and imports, causing disparities in
the supply chain related to costs and GDP. Import costs increased while export and purchasing
services costs decreased. However, despite the challenges, the RMG industry is expected to
rebound as there will always be a demand for affordable, high-quality fashion. To support the
industry's recovery, immediate assistance and support are needed. Maintaining faith in humanity
and restoring confidence in people is crucial for overcoming crises. Recommendations for the
future include ensuring supply chain management, securing cash flow, and maintaining
communication during potential future lockdowns. Workers should be well-informed about
pandemics, and factories should prioritize the well-being of their employees.
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5. Long-run Relationship between Export and Import of

Bangladesh
1.Executive Summary:

This paper investigates the long run relationship between export and import of Bangladesh since
Independence. Foreign trade plus an import role in economic development of a least developed
country. Designing an appropriate trade policy mostly depends on the relationship between export
and import. This paper uses modern time series econometric techniques such as Co-integration,
Engale-Granger causality analyses to trace out the relationship between export and import.
Estimation of relationship is also conducted by OLS method. The study results shows that both
exports and imports are non-stationary at levels but they are stationary at the first difference with
intercept and with intercept and trend.

2.Introduction:

2.1 Background:

Import and export are vital elements for a country to meet its daily obligation and economic
development. In this world, every country depends on another country because not all countries
have the resources and skills needed to produce specific products and services. Bangladesh is a
developing country with a huge population for meeting daily demand and hence must import raw
materials from other countries. Bangladesh imports dairy products, machinery, and raw materials,
on the other hand, exports mainly the Ready-Made Garments products. Bangladesh made its
highest exports so far in January 2019 which amounts to BDT 465.30 billion , on the other hand,
the highest export of Bangladesh is BDT 279.82 billion occurred in July 2019 and the difference
between export and import is huge. GDP has also reached 347.991 billion

2.2. Objectives:

 To examine the growth trend of export and import of Bangladesh

 To identify the structural changes and stability of export and import of Bangladesh
 To find out causal relationship between trade liberation and export, import

3. LITERATURE REVIEW:

The existing literatures, related to this study, are briefly reviewed in this section:

Reza analyses the chronic trade deficit of Bangladesh arguing that the export base and export
earnings are persistently very low over a long span of time. He finds out the performance of export
sub-sector is very poor because of heavy concentration on few traditional items like raw, jute, jute
goods, tea, fish, leathers etc
 17

A.R. Bhuyan examines the prospect of non-tradditional exports focusing on the imports of
machinery and industrial raw materials. He shows that the demands for non-tradditional items have
been growing and there remains scope for modernization and expansion of this sub-sector

Kabir, in his study, tries to estimate the aggregate import and export demand functions of
Bangladesh using time series data for a sample period from 1973 to 1983 In his study, he chooses
domestic price, foreign price, foreign exchange reserve, exchange rate as explanatory variables

Mahmud explains the possibilities of the export led growth in Bangladesh. He argues that a
country like Bangladesh can achieve high standards of living only through industrialization and
expansion of trade in manufacturing

Talukder analyses the diversification of export with reference to Ready Made Garments. He
points out that Bangladesh has comparative advantage in RMG because of cheap labour.

Roy analyses the determinants of export performance of export performance of Bangladesh using
an econometric analyses. He examine the causal relationship of the determining factors and export
performance for Bangladesh

Raihan (2007) analyzed the dynamics of trade liberalization in Bangladesh in the context of
policies and practices by using modern tools of economic analysis. He reviewed theoretical
evidences between trade liberalization and economic growth trade liberalization policies and
programmes in Bangladesh

4.Methodology:

The study follows time series econometric techniques and tools for testing difficult models and
hypotheses to conform the long run relationship between export and import of Bangladesh. The
approach and methodoly used in the present study are different to some extent from those adopted
in the works cited in the literature review

4.1.Data Sources and Methods of Data Collection :

Annual time series data for the period from 1972-73 to 2008-2009 for the relevant variables is
collected from the various publications of the government of Bangladesh, would Tables of World
Bank, International Financial Statistics of IMF etc. The collected data from secondary sources are
processed in an orderly manner so that it could be used for econometric modeling
 18

5.Findings:

5.1. Growth Trend of Exports

The compound growth rate and compound annual growth rate of exports are estimated separately
for the pre-liberalized and post-liberalized regimes as well as for the entire study period from 1972-
1973 to 2009-2010. It is observed that the compound growth rate of exports in the pre-liberalized
regime i.e. 1972-1973 to 1989-1990 is 8.81 percent while the same is 11.90 percent in the post -
liberalized period i.e. 1990-1991 to 2009-2010. The CGR for the whole study period i.e. 1972-
1973 to 2009-2010 is estimated as 11.56 percent. It indicates that the growth rates of exports are
higher in the post -liberalized period. On the other hand , it is observed that the compound annual
growth rate of exports in the pre-liberalized regime i.e. 1972-1973 to 1989-1990 is 8.54 while the
same is 11.88% in the post -liberalized period i.e. 1990-1991 to 2009-2010

5.2 Test of Hypothesis

Using t-test the following hypothesis is tested whether trade liberalization has positive impact on
export growth in Bangladesh.

H০: There is no change in export growth between pre and post trade liberalization regime.

H1: There is significant positive change in export growth between pre and post trade liberalization
regime.

The t test is performed on the basis of trend regression of the pre liberalization and post
liberalization periods.

t 37df = (b1 – b2)/√(Seb1)2+(Seb2)2

Here, b1= slope coefficient of time variable in the pre liberalization period, b2 = slope coefficient
of time variable in the post liberalization period, Se = standard error of slope coefficient.

5.3. Chow Breakpoint Test

The structural change in export of Bangladesh to the liberalization of trade is tested by Chow Test
using the F-test which can be Formulated as:

F = (RSS-(RSS1+RSS2)/k)/(RSS1+RSS2) / (RSS1+RSS2)/(n1+n2-2k)

Chow Breakpoint Test is conducted based on 1989-1990 and it is found that F-statistic is greater
than F critical value at 2, 34 degree of freedom and the p value 0.0000 indicates that the null
hypothesis is Ho of structural stability is rejected
 19

5.3. Instability of Exports:

The instability is measured separately by using Coppock’s Instability Index (CII) for pre
liberalized period and post liberalized period. The CII is also measured for the overall study period.
The estimate results are shown in the following table and the detail procedure for calculating the
index is analyzed in methodology chapter. It is evident from the value of CII that the exports of
Bangladesh in pre liberalized period is more instable as compared to post liberalized period as
expected. The CII is computed as 11.56 % for the pre liberalized period and 7.76 % for the post
liberalized period. The overall CII is 10.00 % for the study period.

5.4. Growth Trend of Bangladesh’s Import:

5.4.1. Compound Growth Rates of Imports:

The compound growth rates of imports are estimated for the entire study period from 1972-1973
to 2009-2010 as well as for the two sub-periods i.e. Pre -liberalized period from 1972-1973 to
1989-1990 and post-liberalized period from 1990-1991 to 2009-2010. The compound growth rate
of imports in the pre-liberalized regime. i.e. 1972-1973 to 1989-1990 is estimated as 9.08 percent
while the same is 10.41 percent in the post liberalized regime i.e. 1990-1991 to 2009-2010 and
8.98 percent in the overall study period i.e. 1972-1973 to 2009-2010. It indicates that the growth
rates of imports are fluctuating and it becomes higher in the post liberalized regime. The overall
compound growth rate of imports for the period 1972-1973 to 2009-2010 is estimated as 8.98
percent whereas the compound growth rate of export for the same period is found as 11.56 percent.
It indicates that our export sector has performed well compared to that of import sector during the
study period

5.5. Impact of Exports and Imports on Value Addition:

Positive Impact:

Exports provide revenue and foreign exchange, allowing the RMG sector to invest in
modernization, capacity expansion, and training. Imports of high-quality raw materials and
machinery also improve product quality and production efficiency.

Negative Impact:

Excessive reliance on imported materials and machinery can expose the sector to supply chain
disruptions and currency fluctuations. Additionally, a heavy focus on export orders can lead to
limited diversification and lower value addition

Policy recommendations and conclusion

 20

We can conclude that trade reforms or trade liberalization in Bangladesh has positive impact on
exports in Bangladesh. The compound growth rate of exports in the pre-liberalized regime i.e.
1972-1973 to 1989-1990 is 8.81 percent while the same is 11.90 percent in the post liberalized
period i.e. 1990-1991 to 2009-2010. The CGR for the whole study period i.e. 1972 -1973 to 2009-
2010 is estimated as 11.56 percent. It indicates that the growth rates of exports are higher in the
post -liberalization period. It is observed that the compound growth rate of imports in the pre
liberalized regime i.e. 1972-1973 to 1989-1990 is estimated as 9.08 percent while the same is 10.41
percent in the post liberalized regime i.e. 1990-1991 to 2009-2010 and 8.98 percent in the overall
study period.i.e. 1972-1973 to 2009-2010. It indicates that the growth rates of imports and
fluctuating and it becomes higher in the post liberalized regime. The overall compound growth
rate of imports for the period 1972-1973 to 2009-2010 is estimated as 8.98 percent whereas the
compound growth rate of export for the same period is found as 11.56 percent. It indicates that our
export sector has performed well compared to that of import sector during the study period .
 21

6. Impact of Exchange Rate Volatility on Trade in

Bangladesh: A Study Summary
Introduction:
Exchange rate volatility is a critical factor that affects international trade and economic stability.
In the context of Bangladesh, a developing country with a significant presence in the global trade
market, understanding the impact of exchange rate volatility on trade is of utmost importance.
This study aims to examine the relationship between exchange rate volatility and trade in
Bangladesh, focusing on export and import risks as well as the leverage effect. By employing
various ARCH family models, including ARCH, GARCH, and EGARCH, this study seeks to
provide valuable insights into the dynamics of exchange rate volatility and its implications for
the country's economy.
Literature Review:
The existing literature suggests that exchange rate volatility affects trade dynamics. Studies using
GARCH (1, 1) and EGARCH (1, 1) models have found that higher volatility leads to increased
fluctuations and vulnerability in the trade market, posing risks for investors. Stability in
macroeconomic variables and exchange rates is crucial for facilitating trade and ensuring
economic growth.
Different countries have different exchange rate systems, such as fixed or floating rates. Fixed
rates provide stability and are preferred by countries like India and Sri Lanka, while floating
rates are more volatile. Exchange rate volatility can impact trade patterns and investment
decisions, and it is important for countries to manage this volatility.
The literature also highlights the importance of stability in the forex market and exchange rates.
Volatility can create trade and investment risks, and it can hinder fiscal and monetary policy
effectiveness. Financial decisions, such as risk management and price-setting, are influenced by
exchange rate volatility.
While it is challenging to stabilize exchange rate volatility in Bangladesh due to different
exchange rate policies, the geographical similarities among South Asian countries can facilitate
trade and moderate exchange rates. Stability in the forex market is crucial for maintaining total
trade volume.
In conclusion, this literature suggests that exchange rate volatility affects trade dynamics, and
stability in macroeconomic variables and exchange rates is important for facilitating trade and
economic growth. Different exchange rate systems and geographical factors can influence trade
patterns and the management of volatility.
Methodology:
This study analyzes the impact of exchange rate volatility on trade in Bangladesh using time-
series data from January 2013 to June 2019. The study employs the Autoregressive Conditional
Heteroscedasticity (ARCH) family models, including ARCH, GARCH, and EGARCH, to
 22

estimate the results. The International Financial Statistics (IFS), Bangladesh Bank (BB), and
Financial and Real Economic Data (FREED) serve as the primary data sources for selected
variables.

Findings:
The major findings of the study are as follows:
1. GARCH models estimate a negative impact of exchange rate volatility on trade.
2. The EGARCH model suggests that there is no leverage effect in the studied country

Objectives:
The objectives of this study are:
1. To examine the impact of exchange rate volatility on trade in Bangladesh.
2. To assess the export and import risks associated with exchange rate volatility.
3. To determine the leverage effect, if any, of exchange rate volatility on trade in Bangladesh.
Conclusion
In this study aims to shed light on the complex relationship between exchange rate volatility and
trade in Bangladesh. By employing various ARCH family models, the study seeks to provide
empirical evidence and insights into the impact of exchange rate volatility on export and import
risks as well as the leverage effect. The findings of this study will contribute to the existing body
of knowledge and inform policy decisions aimed at promoting trade stability and economic
growth in Bangladesh.
 23

7. Toward Bracketing the Seasonal Export-Import of

Bangladesh: A Time Series based Analytical Approach
Abstract
The research paper delves into the seasonal patterns of exports and imports activities in
Bangladesh, employing a rigorous time series analytical approach. The study aims to provide a
comprehensive understanding of the fluctuations in trade dynamics over specifics time intervals.
Introduction
The introduction provides a contextual background to Bangladesh trade landscape and highlights
the significance of studying seasonal export import patterns .It outlines the objective and
methodology of the research.
Literature review
This section reviews existing literature on seasonal variations in trade ,emphasizing the unique
characteristics and challenged faced by Bangladesh in its export import sector
Methodology
The authors employ sophisticated time series analytical techniques, including autoregressive
integrated moving average models ,to analysis historical data on export and import volumes.
They also incorporate data on macroeconomic indicates and agricultural production to provide a
comprehensive understanding of the seasonal dynamics.
Data collection
The authors meticulosity gathered and curated data from Republic sources ,ensuring its
accuracy and relevance to the study.
Key findings
1.Seasonal patterns in Export –import: The research identifies distinct seasonal patterns in both
exports and imports of Bangladesh. These patterns are influenced by various factors, including
weather conditions, international market demand and domestic economic variable
2. Export -Import Imbalances: The study reveals that Bangladesh experiences fluctuations in
trade Imbalances across different seasons. understanding these Imbalances is crucial for
policymakers and businesses to plan and strategize effectively
3. Impact of Agricultural seasons: The author highlight the significant impact of Agricultural
seasons on export -import dynamics. Seasonal variations in agricultural production influence the
export of agricultural products and the import of related goods such as fertilizers and machinery
4. Policy implications: The research emphasizes the importance of aligning trade policies with
seasonal variations to enhance the country's economic stability. This includes optimizing export -
import regulations and incentives based on the specific needs of each season.
 24

Discussion
The authors interpret the findings, providing insights into the implications of Seasonal variations
on Bangladesh trade policies, economic stability, and Global competitiveness. They also explore
potential strategies to mitigate the impact of these fluctuations.
Conclusion
The research concludes by summarizing the key findings and their border implications. It also
suggests Avenues for further Research in the domain.
 25

Name of Article:
8. Export, Import and Inflation: A Study on Bangladesh (2014)

Summary
The article discusses the impact of international trade, specifically imports and exports, on inflation
in the context of Bangladesh between 1994 and 2011. It highlights that globalization and open
economy dynamics have made international trade a crucial factor in production and consumption
decisions.
In a closed economy, inflation is typically attributed to excess demand within the country.
However, in an open economy like Bangladesh, international trade conditions also influence
inflation. The availability of imports can affect domestic inflation directly through import prices
and indirectly by competing with domestic products. Exports can affect the supply of goods
available to domestic consumers, thus influencing prices.
The article explains that when domestic demand exceeds the output level, inflation occurs, and
countries may use import policies to address excess demand. Conversely, when demand is lower
than domestic output, inflation tends to decrease. Import and export conditions also contribute to
inflation. Rising imports can lead to exchange rate depreciation, making imports more expensive
and raising production costs. On the other hand, increased exports can lead to currency
appreciation, reducing inflation.
The article identifies several factors contributing to inflation in Bangladesh, including exchange
rate depreciation, import dependency, money supply growth, remittances, interest rate
differentials, population growth, and wage increases without productivity growth.
The study analyzes the relationship between inflation, imports, and exports in Bangladesh using
econometric techniques. It is structured with a literature review, data description, methodology,
empirical findings, and concluding remarks. The findings aim to provide insights for anti-
inflationary policies, not only for Bangladesh but also for other developing countries in the South
Asian region where import and export dynamics play a crucial role in inflation.
Literature Review
The literature on the determinants of inflation encompasses various theories and empirical
findings. In the Keynesian era, inflation was attributed to either increased aggregate demand
(demand-pull inflation) or decreased aggregate supply (cost-push inflation), with fiscal policy seen
as a means to control it. The Phillips Curve introduced a trade-off between inflation and
unemployment, emphasizing a negative relationship between the two. The quantity theory of
 26

money stressed the role of monetary policy in controlling inflation, positing a direct relationship
between money supply and price levels.
Studies in both developed and developing countries have explored factors influencing inflation. In
developing nations, fiscal imbalances, higher money growth, and exchange rate depreciation from
balance of payments crises often drive inflation. Import-export dynamics have also been studied.
For instance, research in Turkey found a long-term relationship between inflation and imports,
with a unidirectional causality from imports to inflation. Studies in Nigeria revealed positive
associations between imports and inflation and indirect links between exchange rates and inflation.
In cross-sectional data across 160 countries, high inflation correlated with low exports, particularly
for primary commodity exporters. In the US, imports showed a negative relationship with inflation,
while exports had a positive one. In Pakistan, factors like government borrowing, real demand,
private sector borrowing, import prices, exchange rates, taxes, and previous year's consumer price
index contributed to inflation. Exchange rate regimes and money growth were highlighted as
crucial determinants, especially in countries with floating exchange rates.
In Bangladesh, research emphasized variables such as changes in money supply, devaluation,
agricultural and import bottlenecks, government expenditure, interest rates, wage rates, bank
credit, and import price indexes as significant drivers of inflation. Exchange rate depreciation was
found to positively impact inflation.
Methodology
The methodology of the bracketed article can be summarized as follows:

Research Objective: The study aims to investigate the relationship between inflation and two
macroeconomic variables, Import and Export, using monthly time series data for Bangladesh from
January 1994 to December 2011, obtained from the Global Economic Monitor released by the
World Bank.
Variables:
 Dependent Variable: Inflation, measured in terms of the Consumer Price Index (CPI),
which reflects changes in the cost of a basket of goods and services for the average
consumer.
 Independent Variables: Import and Export of goods and services, measured in constant
2000 U.S. million dollars.
Data Preprocessing:
 The authors check for the non-stationarity property of the data using the Augmented
Dickey-Fuller (ADF) test.
Lag Length Selection:
 27

 The lag length for the analysis is determined using the Schwarz Information Criterion (SIC)
with the help of E-Views 7.0 software.
Co-integration Analysis:
 The study aims to establish whether there is a stable and non-spurious co-integrating
relationship among the variables.
 The Johansen procedure is chosen to test for co-integration.
 The lag order for co-integration is selected based on the Schwarz Bayesian Criteria (SBC).
Vector Error Correction Model (VECM):
 If there is at least one co-integrating relationship among the variables, the study proceeds
to estimate a VECM.
 The VECM helps analyze short-run causal relationships among the variables, providing
information on the speed of adjustment to long-run equilibrium and avoiding spurious
regression issues (as per Engle and Granger, 1987).
Variance Decompositions and Impulse Response Functions:
 After estimating the VECM, the authors use Variance Decompositions and Impulse
Response Functions to understand how an error shock to each variable impacts its own
future dynamics and the future dynamics of other variables in the VECM system.
 Variance decomposition measures the percentage of forecast error variation explained by
other variables in the short-run dynamics and interactions.
Testing for Causality in the Long Run:
 The final step involves testing for causality between the study variables in the long run.
 Two regressions are estimated to examine Granger causality, assuming that the
disturbances are uncorrelated.
 The first regression assesses whether the current value of Y (inflation) is related to past
values of X (Import and Export).
 The second regression examines whether the current value of X (Import and Export) is
related to past values of Y (inflation).
Overall, this methodology outlines a comprehensive approach to analyzing the relationships and
causality between inflation, import, and export in the context of the Bangladeshi economy over a
specified time period.
Findings
The analysis finds that in Bangladesh, the Consumer Price Index (CPI) is non-stationary while
Import and Export are stationary. The Ordinary Least Squares (OLS) regression model shows a
positive relationship between CPI and Import/Export. However, autocorrelation is detected,
indicating a spurious regression. Co-integration tests reveal two co-integrating vectors, indicating
a long-run relationship. Import positively impacts inflation, while Export has a negative effect. In
 28

the short run, Vector Error Correction Model (VECM) shows Import's positive and Export's
negative associations with inflation. Variance decomposition highlights Import and Export's
increasing influence on inflation over time. Granger causality tests indicate bidirectional causality
between inflation and export, and unidirectional causality from inflation to import.
Conclusion
The study examines the relationship between inflation, imports, and exports in Bangladesh from
1994 to 2011. Results show that both imports and exports have significant positive and negative
impacts on inflation in both the short and long term. Granger causality analysis indicates a bilateral
causality between inflation and exports, but no causality from imports to inflation. These findings
emphasize the need for anti-inflationary policies that carefully consider import and export
decisions to ensure stable economic growth in Bangladesh, given the country's historical struggles
with inflation.

References
Mukit, D. M.-A. (2014, February). Import/Export. Retrieved from ResearchGate:
https://www.researchgate.net/publication/270450475
 29

9. Effect of Agricultural Exports and Imports on

Economic Growth in Bangladesh: A Study on
Agribusiness Supply Chain
Abstract:
In addition to suggesting a customized supply chain model for the development of agribusiness
in Bangladesh, the study aims to ascertain the influence of agricultural exports and imports on
economic growth in that nation. The study discovered a long-term causal relationship between
agricultural commodity imports and exports and economic growth in Bangladesh. Smooth
operations, systematic management, and financial gains on a domestic and global scale are the
goals of the proposed supply chain model for agribusiness.

1.Introduction :

1.1 Background:
Bangladesh's economy is largely based on agriculture, which has been a key factor in the nation's
economic growth. The GDP of the nation is significantly influenced by agriculture, which also
employs a sizable portion of the workforce. Over the years, the contribution of agriculture to the
GDP and the percentage of the labor force engaged in farming have decreased. However,
agriculture still plays a crucial role as a backward and forward linkage for agro-based businesses
in Bangladesh. The development of the agribusiness supply chain has been a focus in recent years,
with national and foreign corporations entering the sector and importing raw materials. This has
led to the need for a more effective and profitable supply chain model for agribusiness in
Bangladesh.

1.2. Objectives:

Through theoretical and practical implications, the paper helps Bangladesh develop a more
efficient and profitable agribusiness supply chain.
For academics, businesspeople, politicians, policymakers, investors, and researchers, it offers
insights into Bangladesh's agribusiness. A unidirectional impact and a long-term causal
relationship between agricultural commodity imports and exports and economic growth are
established by the study's analysis of the effects of agricultural exports and imports on economic
growth in Bangladesh. It suggests an updated and tailored model of the supply chain for the
expansion of agribusiness in Bangladesh, with the goal of achieving efficient operations,
systematic management, and financial gains on both a national and international level. In order to
provide a thorough analysis of the connection between agricultural imports, exports, and
Bangladesh's economic growth, the paper uses secondary data from the World Bank and the
Bangladesh Bank.
2. LITERATURE REVIEW:
The study focuses on the contribution of Bangladesh's agricultural sector to economic growth
and emphasizes the link between GDP growth and exports. By analyzing the impact of
 30

agricultural exports and imports on Bangladesh's economic intensification and putting forth a
fresh supply chain model to boost exports, it fills a gap in the body of existing literature.The
study acknowledges that while many studies have focused on the effects of export-import on the
economy or supply chain separately, there has been relatively little research specifically on
agriculture and its effects on economic growth. It quotes Li et al. (2010), who discovered that
while export growth had the opposite impact on China's economic growth, import growth
significantly boosted that country's growth.The study also cites Wong (2008), who investigated
how exports and domestic demand impacted the economies of the ASEAN-5 countries and
discovered a causal relationship between exports and economic growth that was bidirectional.
Furthermore, the study emphasizes the importance of a more effective and profitable
agribusiness supply chain in Bangladesh, which contributes to the sector's development through
theoretical and practical implications.The authors examine the relationship between agricultural
imports, exports, and economic growth in Bangladesh using secondary data from the World
Bank and the Bangladesh Bank.

3. Methodology:
3.1. Data Collection:
The research methodology of this research involved gathering information from secondary
sources, particularly information from the World Bank and the Bangladesh Bank.Gross domestic
product (GDP) was the dependent variable in the analysis, and agricultural exports and imports
were the independent variables. The Johansen co-integration test was used to measure the causal
relationship between the variables, and pairwise Granger causality was used to examine the
effects of the variables on economic growth in Bangladesh. Maximum likelihood estimates
(MLE) were used in the Johansen test to count the associations and assess the reliability of co-
integrating relationships.
3.2. Data Analysis:
Additionally, the research examined the connections between Bangladesh's agricultural
commodity imports, exports, and GDP using correlation analysis, Granger causality testing, and
Johansen co-integration testing.

4. Findings:
The empirical analysis revealed that agricultural commodity imports and exports have a
unidirectional impact on economic growth in Bangladesh, indicating a significant relationship
between these variables The study discovered a long-term causal relationship between
Bangladesh's economic growth and imports and exports of agricultural commodities. This
implies that adjustments to agricultural imports and exports may have a long-term effect on the
nation's economic development. A correlation analysis of Bangladesh's agricultural commodity
imports, exports, and GDP revealed a strongly positive and significant linear relationship
 31

between these variables. The coherence of co-integrating relationships between agricultural

commodity imports, exports, and GDP was examined using the Johansen co-integration test. The
number of associations and their estimates are determined by this test. By offering theoretical
and practical implications for achieving seamless operations, systematic management, and
financial gains both domestically and internationally, the research helps Bangladesh develop a
more effective and profitable agribusiness supply chain.

4. Limitations of this paper:

The paper focuses solely on the effect of agricultural exports and imports on economic growth in
Bangladesh without taking into account other factors that may have an impact on economic
growth. As a result, the paper may have limitations in terms of accuracy and reliability. Since the
proposed supply chain model only covers the years 2000 to 2020, it is not discussed because it
might not be applicable to other years or scenarios in the future.

8. Conclusion:
Bangladesh's economic growth is significantly impacted by both agricultural exports and
imports; there is a one-way relationship between these two factors. The proposed upgraded and
tailored supply chain model for Bangladeshi agribusiness aims to achieve efficient operations,
organized management, and financial gains both nationally and internationally. The suggested
supply chain model is anticipated to increase export value in the future, supporting Bangladesh's
continued economic growth. With regard to Bangladesh's economic performance, the
conclusions of this study can help academics, policymakers, and development organizations
make well-informed choices that additional study can be done to investigate the effects of the
agribusiness supply chain model in various nations.
 32

10. A Study on Export Receipts and Import Payments of

Goods and Services the Analysis for Bank of Bangladesh
Kumar, M. D.
Department of Commerce with Computer Applications, Mannar Thirumalai Naicker College
(Autonomous), (Affiliated to Madurai Kamaraj University), Madurai – 625004, Tamilnadu,
India.

Introduction: The Bangladesh Bank, as the Central Bank of Bangladesh, plays a crucial role in
regulating and supervising the country's banking sector. It has implemented various measures and
policies to ensure stability and efficiency in the sector. These measures include stricter rules on
loan disbursement and credit evaluation, mandatory use of technology in banking operations, and
periodic monitoring of financial institutions. Additionally, the Bangladesh Bank promotes
financial inclusion by encouraging banks to extend services to unbanked populations, especially
in rural areas. Despite achievements, challenges persist, such as addressing loan defaults and
upgrading digital banking infrastructure.
Historically, the banking sector in Bangladesh dates back to the early 19th century under British
rule. After gaining independence in 1971, the Bangladesh Bank was established to regulate and
supervise the sector. Over the years, the sector has seen significant growth and diversification,
with the emergence of private, foreign, and specialized banks offering new products and services.
Challenges include inadequate infrastructure, limited credit access, and a shortage of skilled
human resources.
The Bangladesh Bank also plays a pivotal role in the country's export industry by supporting
exporters, offering credit facilities, managing the exchange rate of the Bangladeshi taka, and
cooperating with other central banks worldwide to facilitate trade finance. This support enhances
export competitiveness and contributes to economic growth.
Furthermore, the Central Bank of Bangladesh regulates imports by issuing permits and licenses,
setting policies and guidelines, and levying tariffs and duties to protect local industries and ensure
the quality and origin of imported goods. These measures contribute to maintaining the stability
of the country's economy and safeguarding its financial health.

Literature Review: Hasan et al. (2019) emphasize the significance of remittances in Bangladesh's
economy. Remittances have become a major economic factor, contributing to national savings,
economic development, balance of payments, foreign exchange reserves, and the velocity of
money. They have consistently added to export revenues, accounting for approximately 35% of
earnings for the past two decades. Remittances have also reduced reliance on foreign aid and are
now the second-largest source of foreign exchange earnings after the garment industry. Despite
the growth in remittances, the rate of emigration from Bangladesh is outpacing the increase in
 33

remittance earnings. Tasneema and Bipasha (2017) discuss the increasing internationalization of
banking institutions in Bangladesh due to technological advancements and global
interconnectedness. Banks are considered crucial for economic growth in Bangladesh, and the
domestic market is becoming saturated, prompting banks to expand internationally. However, the
study finds that Bangladeshi banks are facing challenges in their internationalization efforts and
are taking a defensive stance, deviating from the typical path of internationalization. Habib and
Shah (2017) stress the importance of financial services in supporting a robust trade system. They
highlight the role of banks in facilitating trade by providing payment, finance, and risk
management services. The study focuses on trade service activities in Bangladesh and identifies
compliance and trade-based money laundering as significant issues in the trade services sector.
Sayera and Chowdhury (2016) investigate the impact of Real Exchange Rate (RER) depreciation
on Bangladesh's export, import, and trade balance. They calculate the RER using nominal
exchange rates and consumer price indices of Bangladesh and the United States. The study finds
a link between RER, domestic income, and the trade balance, suggesting that RER depreciation
has an impact on Bangladesh's export and import levels. The J-curve effect is observed in exports,
but no effects are detected regarding the trade balance or imports when using the trade-weighted
real effective exchange rate. This literature review highlights the importance of remittances, the
challenges faced by Bangladeshi banks in internationalization, the role of banks in trade
facilitation, and the impact of RER depreciation on trade dynamics in Bangladesh. These factors
collectively contribute to the country's economic growth and development.

OBJECTIVES OF THE PAPER:

1. To research the Bank of Bangladesh's export receipts and import payments for goods and
services.
2. To assess the payments and receipts for exports of goods and services.
3. To analyze Bangladesh's export receipts and import payments for goods and services by
CategoryWise Imports Major Commodities, by regions, and by service delivery method.

Methodology: The current study is descriptive in nature and relies solely on secondary data from
the Export Receipts and Payments of Goods and Services in Bank of Bangladesh. The data was
acquired from the Bank of Bangladesh's annual reports for the previous three years as well as other
pertinent publications. The literature was compiled from legitimately published journals on
national and international levels as well as associated websites. Using MS Excel, the secondary
data was subjectively examined and made available in tables and charts. The data were analysed
using growth analysis, compound annual growth rate (CAGR), descriptive statistics, forecasting
analysis, and a hypothesis frame based on t-test and ANOVA.
 34

Conclusion: The Central Bank of Bangladesh plays a crucial role in regulating imports to maintain
economic stability and sustainability. It collaborates with government agencies and international
organizations to establish transparent and efficient import policies. The bank also protects local
industries and promotes domestic production through import duties and tariffs, ensuring a
favorable trade balance and economic resilience. Additionally, it promotes financial inclusion and
banking access, supports entrepreneurship, and enhances financial literacy through various
schemes and initiatives. The central bank enforces ethical standards for banks and financial
institutions. Statistical analyses reveal significant differences in variables related to imports. In
conclusion, the Central Bank of Bangladesh is pivotal in the country's economic development,
ensuring banking sector stability, financial inclusion, entrepreneurship, and overall economic
growth. Its role will remain vital in the future.