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India and Bangladesh: an analysis of bilateral trade between two emerging economies of SAFTA

Author

Listed:
  • Hafiz Wasim Akram
  • Shouvik Sanyal
  • Habib Sano Aliy

Abstract

The paper analyses India-Bangladesh bilateral trade with reference to South Asian Free Trade Area. For the purpose of analysis, the data period ranges from 1995 to 2019. The primary analysis reveals that bilateral trade has been weak, lackadaisical and the SAFTA agreement has not brought about any perceptible change in bilateral trade performance of these two countries. The causes of poor trade performance have been checked by applying revealed comparative advantage (RCA) as suggested by Balassa (1965) and trade complementarity index (TCI) as suggested by the International Trade Department of World Bank (ITD-World Bank, 2010). The prospect of intra-industry increment was also examined by using Grubel-Lloyd index introduced by Grubel and Lloyd (1971). The analysis reveals that India and Bangladesh suffer from lack of export specialisation in a majority of product groups and weak trade complementarities exist between them.

Suggested Citation

  • Hafiz Wasim Akram & Shouvik Sanyal & Habib Sano Aliy, 2024. "India and Bangladesh: an analysis of bilateral trade between two emerging economies of SAFTA," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 38(3), pages 425-440.
    • Handle: RePEc:ids:ijbglo:v:38:y:2024:i:3:p:425-440
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