Sohrab Khurshid Haider

International Transportation Management- Degree Program

SUNY Maritime College, New York

May 09, 2020

Role of International Trade for Economic Growth in Bangladesh during the period of 2000-
2019 and Future Challenges

Contents

1. Abstract........................................................................................P 2

2. Introduction..................................................................................P 3

3. Brief Details of Annual GDP Growth..........................................P 4

4. How is International Trade Help Shaping the Economy?............P 5

5. Details of Bangladesh’s Trade Sectors

 Textile Industry.........................................................P 6

 Expatriate Labors......................................................P 7

 Shipbuilding & Ship Breaking in Bangladesh..........P 9

 Information and Communication Technology..........P 9

 Leather Industry........................................................P 8

 Food Processing........................................................P 11

 Pharmaceutical Industry............................................P 13

6. Future Challenges for Bangladesh..............................................P 14

7. Overcoming Difficulties.............................................................P 16

8. Trade Facilitation.........................................................................P 17

9. Socio-Economic Changes............................................................P 19

10. Conclusion...................................................................................P 19
 Sohrab 1

Role of International Trade for Economic Growth in Bangladesh during the period of 2000-
2019 and Future Challenges

Abstract

International trade is the lifeblood of the global economy. With the formation of the

World Trade Organization (WTO) in 1994 and its role in various trade facilitation activities

among member states now more people, goods and services are crossing national borders

than ever before. Reduction in trade barriers, advances in transportation, communication, and

technology and proliferation of trade agreements helped the world economic growth excelled

through. Not only developed countries, who account for the bulk of world trade (largest

exporters and importers), international trade also helped many developing countries stimulate

their economy by exporting products with relatively comparative advantages. Thus, by

participating in international trade, Bangladesh, a Southeast Asian low-income country, has

made remarkable progress in reducing poverty and sustainable economic growth over the last

two decades. Expansion of local products in the world market help the nation achieve higher

growth of their national GNP, new employment opportunities for local people and ultimately

raising living standards. Such success was made possible mainly export of various labor-

intensive apparel goods. Likewise, the apparel industry, to gain momentum in other potential

sectors such as agro-industry, pharmaceuticals, shipbuilding industry, information

technology, leather products, steel industry, light engineering industry, and supply of skilled

workers to work abroad need policy planning, infrastructure developments, upgrade to

modern technology, human resource development, sources of capital, etc. This research

paper, thus, examines the prospect of these emerging trade sectors in Bangladesh, and future

challenges that need to be overcome to achieve sustainable economic growth.

 Sohrab 2

Introduction

1. Bangladesh formerly known as East Pakistan emerged as an independent nation in

the year 1971 after a devastating war with West Pakistan. The economy of the
war-torn new nation initially struggled due to lack of capital for infrastructure
development, scarcity of cultivable land, frequent natural disasters such as storms
and floods, limited natural resources, and a huge population with less work
opportunity. Many skeptics proclaimed the economy of poor Bangladesh would
not sustain continue fighting with so many adverse factors. However, with
collective efforts from both government and hard-working men and women the
nation has increasingly able to silence such skepticism. There has been no famine
since 1974, more than 20 million Bangladeshis escaped from poverty between
1991 and 2010, and the economy has grown at about 6 percent a year since 2000.
How the country made such a remarkable achievement? In the mid-1980s the
gradual demand for the country’s cheap labor force to engage in the ready-made
garments industry paved the way for economic success. Thanks to international
trade that suddenly opened new opportunities for a huge male and female
workforce. Today it’s a USD 32 billion export-oriented apparel industry1Akhter, A.
Bangladesh’s apparel export trend of 2018. January
2019.https://www.textiletoday.com.bd/bangladeshs-apparel-export-trend-2018/