A Study on the Export Potential of Bangladesh’s Ready-Made Garments
2
조회
0
다운로드
0
인용
0
참고문헌
키워드
초록
This article explores the international trade flow of Bangladesh’s ready-made garments (RMG). We first suggest the brief history and an international structure of trade among countries by using the trade volume. Then we implemented a gravity model regression with the sample of 38 major partner countries in order to investigate the potential export market for the RMG industry. The fixed effect and random effect model for the panel data during the period of 1990 to 2011 are estimated. Our result shows that Bangladesh’s RMG exports are affected positively by the size of economy, inflation, exchange rate, foreign direct investment(FDI) and trade openness. On the other hand, the distance between trading partners are related negatively with the trade volume. We used the estimated coefficients from the panel regression in order to predict RMG export potential of Bangladesh. This might show which country is the promising export market for Bangladesh RMG industry. We found that Bangladesh has the highest potential of RMG export with Japan and USA, which seem to have considerable room for export growth if trade barriers and constraints are removed. We added some policy implications for encouraging the RMG export of Bangladesh by using the results from the analysis.
Abstract
This article explores the international trade flow of Bangladesh’s ready-made garments (RMG). We first suggest the brief history and an international structure of trade among countries by using the trade volume. Then we implemented a gravity model regression with the sample of 38 major partner countries in order to investigate the potential export market for the RMG industry. The fixed effect and random effect model for the panel data during the period of 1990 to 2011 are estimated. Our result shows that Bangladesh’s RMG exports are affected positively by the size of economy, inflation, exchange rate, foreign direct investment(FDI) and trade openness. On the other hand, the distance between trading partners are related negatively with the trade volume. We used the estimated coefficients from the panel regression in order to predict RMG export potential of Bangladesh. This might show which country is the promising export market for Bangladesh RMG industry. We found that Bangladesh has the highest potential of RMG export with Japan and USA, which seem to have considerable room for export growth if trade barriers and constraints are removed. We added some policy implications for encouraging the RMG export of Bangladesh by using the results from the analysis.
참고문헌 (43)
- Ahmed, F. Z., "The paradox of export growth in areas of weak governance: The case of the readymade garment sector in Bangladesh", World Development, 56, pp.258~271 (2014)
- Improving wages and working conditions in the Bangladeshi garment sector: The role of horizontal and vertical relations, "Ahmed, N.", ~, pp.Capturing the Gains working paper 40 (2014)
- Borders, trade and welfare, "Anderson, J. E.", National Bureau of Economic Research, ~, pp.National Bureau of Economic Research(No. w8515) (2001)
- Gravity with Gravitas : a Solution to the Border Puzzle, "Anderson, J. E.", NBER, ~, pp.NBER Working Paper no 8079 (2001)
- Antonucci, D., "Does Turkey have a special trade relation with the EU? A gravity model approach", Economic Systems, 30(2), pp.157~169 (2006)
- Baltagi, Badi, H., "Econometrics Analysis of Panel Data. Third edition" (1995), John Wiley & Sons, Ltd
- Amita Batra, "India's global trade potential: the gravity model approach", Global Economic Review, 35(3), pp.327~361 (2006), 동서문제연구원
- Bergstrand, J. H., "The gravity equation in international trade: some microeconomic foundations and empirical evidence", The Review of Economics and Statistics, pp.474~481 (1985)
- Cheng, I. H., "Controlling for heterogeneity in gravity models of trade and integration", Federal Reserve Bank of St. Louis Working Paper Series, 87(1), pp.49~63 (2005)
- Christie, E., "Potential trade in South-East Europe: a gravity model approach", SEER-South-East Europe Review for Labour and Social Affairs, (4), pp.81~101 (2002)
- Feenstra, R. C., "Using the gravity equation to differentiate among alternative theories of trade", Canadian Journal of Economics, pp.430~447 (2001)
- A Development Strategy for Asian Economies: Korean Perspective, "Fischer, S.", ~, pp.Working paper ADB 0515.04 (2002)
- Frankel, J., "Trading blocs and the Americas: The natural, the unnatural, and the super-natural", Journal of Development Economics, 47(1), pp.61~95 (1995)
- Trade Blocs and Currency Blocs, "Frankel, Jeffrey A.", ~, pp.Working Paper No. 4335 (1993)
- Gujarati, N., "Basic Econometrics" (2003), McGraw Hill
- Helpman, E., "International trade in the presence of product differentiation, economies of scale and monopolistic competition: A Chamberlin-Heckscher-Ohlin approach", Journal of International Economics, 11(3), pp.305~340 (1981)
- Jakab, Z. M., "How far has trade integration advanced? An analysis of the actual and potential trade of three Central and Eastern European countries", Journal of Comparative Economics, 29(2), pp.276~292 (2001)
- Joarder, M. A. M., "Post-MFA performance of Bangladesh apparel sector", International Review of Business Research Papers, 6(4), pp.134~144 (2010)
- Kaur, S., "India’s Export Potential to Other SAARC Countries : A Gravity Model Analysis", Journal of Global Economy, 6(3), pp.167~184 (2010)
- Kimura, F., "The gravity equation in international trade in services", Review of World Economics, 142(1), pp.92~121 (2006)
- Krugman, P. R., "Increasing returns, monopolistic competition, and international trade", Journal of International Economics, 9(4), pp.469~479 (1979)
- Krugman, P., "Growing world trade: causes and consequences", Brookings Papers on Economic Activity, pp.327~377 (1995)
- Lancaster, K., "Intra-industry trade under perfect monopolistic competition", Journal of International Economics, 10(2), pp.151~175 (1980)
- Estimation of the gravity equation in the presence of zero flows, "Linders, G. J.", ~, pp.Inbergen Institute Discussion Paper No. 06-072 (2006), 3
- Linneman, H., "An Econometrics Study of International Trade Flows" (1966), North-Holland
- Trade Potentials in Gravity Panel data models, "Luca, D. B.", Institute for Studies and Economic Analyses-ISAE, ~, pp.Institute for Studies and Economic Analyses-ISAE, 44 (2004)
- Mahmud, R. B., "Skills development in Bangladesh RMG sector", The News Today, ~ (2012)
- Markusen, J. R., "The boundaries of multinational enterprises and the theory of international trade", The Journal of Economic Perspectives, pp.169~189 (1995)
- Martínez-Zarzoso, I., "Augmented gravity model : An empirical application to Mercosur-European Union trade flows", Journal of Applied Economics, 6(2), pp.291~316 (2003)
- Matyas, L., "Modelling export activity of eleven APEC countries, 1978-1997", Applied Econometrics and International Development, 4(4) (2004)
- Maurel, M., "The new geography of Eastern European trade", Kyklos, 51(1), pp.45~72 (1998)
- Montanari, M., "EU trade with the Balkans : Large room for growth?", Eastern European Economics, 43(1), pp.59~81 (2005)
- Mottaleb, K. A., "An inquiry into the rapid growth of the garment industry in Bangladesh", Economic Development and Cultural Change, 60(1), pp.67~89 (2011)
- Raballand, G., "Determinants of the negative impact of being landlocked on trade : an empirical investigation through the Central Asian case", Comparative Economic Studies, 45(4), pp.520~536 (2003)
- Rahman, M., "Trade potential in SAFTA : An application of augmented gravity model", CPD occasional paper series, 61, pp.512~ (2006)
- Rahman, M. M., "A panel data analysis of Bangladesh’s trade: the gravity model approach", Proceedings of the 5th Annual Conference of the European Trade Study Group(ETSG 2003) (2003)
- Rahman, M. M., "Australia's global trade potential: evidence from the gravity model analysis", Proceedings of the 2009Oxford Business and Economics Conference(OBEC 2009), pp.1~41 (2009), Oxford University Press
- Rhee, Y. W., "The catalyst model of development : Lessons from Bangladesh's success with garment exports", World Development, 18(2), pp.333~346 (1990)
- Salvatore, D., "International Economics" (1990), Macmillan publishing company
- Thai, Tri Do, "A Gravity Model of Trade between Vietnam and Twenty Three European Countries", pp.2006
- Tinbergen, J., "Shaping the world economy : suggestions for an international economic policy(No. HD82 T54)", Twentieth Century Fund, ~ (1962)
- The Garment Industry in Bangladesh, Dynamics of the Garment Industry in Low Income Countries: Experience of Asia and Africa, "Yunus, M.", IDE-JETRO, ~ (2012)
- Zhang, J., "A gravity model with variable coefficients : The EEC trade with third countries", Geographical Analysis, 27(4), pp.307~320 (1995)