The Success of Export and Its Impact on GDP of Bangladesh

摘要

Bangladesh, economy has changed a lot in 30 years. On an average, Its GDP is growing by 7% a year with a booming garment industry, which now ranks second, in exports. In this paper, we applied geometric method to calculate the different growth rates whereas for the one-year growth rate (year-to-year) arithmetic method is used. It is found that the export grew at the rate of 15.99% over the last 26 years from the fiscal years 1990 to 2016. Over the last 26 years, the ratio of export to GDP has increased to 3.95% per year on an average. The total export has increased to 47 times in fiscal 2016 compare to 1990. The export was 4.99% of the GDP in 1990 (at current market price) whereas in 2016 it stood to 13.67% of GDP This boost expand of export is mainly driven by the rich and constant growth of the readymade Garments, RMG (including Knit Wear & Hosiery) sector which grew at the rate of 18.56% per year. RMG contributes almost 69% (excluding EPZ) of the total export in the year 2016 whereas it was 38.95% of the total export in 1990. The Tea grew negatively at the rate of -7.57%. Although the growths of Jute; Fish & Shrimp; and Leather were positive which were 6.411%, 6.81%, and 5.36% respectively but the shares of all the products along with Tea to the total export have fallen drastically over the last 26 years. The policy makers should find out the reason behind this and continue to search for new markets.