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Using Input–Output Analysis Framework to Explain Economic Diversification and Structural Transformation in Bangladesh

Author

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  • Mercer-Blackman , Valerie

    (Asian Development Bank)

  • Foronda , Amador

    (Asian Development Bank)

  • Mariasingham , Mahinthan J.

    (Asian Development Bank)

Abstract

Existing literature on economic growth and structural change relies on trade data to make pronouncements about a country’s competitiveness and long-term growth prospects through the acquisition of capabilities. However, insufficient data give us a limited view of what is happening within the domestic economy, and how the development of manufacturing through links in the production process leads to the export of intermediate or final products. Using input–output data, this paper devises an agglomeration indicator to measure economic diversification and to compare Bangladesh with other key economies. In the process, we shed light on the symbiotic relationship between manufacturing and services as the country develops. Despite Bangladesh’s astounding growth over the past 15 years, diversification has been somewhat slower than expected for its level of development.

Suggested Citation

  • Mercer-Blackman , Valerie & Foronda , Amador & Mariasingham , Mahinthan J., 2017. "Using Input–Output Analysis Framework to Explain Economic Diversification and Structural Transformation in Bangladesh," ADB Economics Working Paper Series 513, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0513
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    References listed on IDEAS

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    1. Zhi Wang & Shang-Jin Wei & Kunfu Zhu, 2013. "Quantifying International Production Sharing at the Bilateral and Sector Levels," NBER Working Papers 19677, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Khan, Muhammad Aamir, 2020. "Cross sectoral linkages to explain structural transformation in Nepal," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 221-235.
    2. Mariasingham, Mahintan Joseph & Baris, Kristina & Lumba, Angelo Jose, 2020. "Evolving Trends in Global Value Chain Analysis: Country Case Studies of Brunei Darussalam, Malaysia, and Singapore," Conference papers 333150, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Muhammad Tashfiq Huq & Masaru Ichihashi, 2023. "Prospective Accelerating Sectors to Attain Sustainable Development in Bangladesh Economy: Findings from a Sectoral Approach Using Input-Output Analysis," Sustainability, MDPI, vol. 15(3), pages 1-23, February.
    4. Valerie Mercer-Blackman & Christine Ablaza, 2018. "The Servicification of Manufacturing in Asia: Redefining the Sources of Labor Productivity," Working Papers id:12954, eSocialSciences.

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    More about this item

    Keywords

    Bangladesh; business services; economic diversification; global value chains; input–output tables; ready-made garments; structural transformation;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • F15 - International Economics - - Trade - - - Economic Integration
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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