IDEAS home Printed from https://ideas.repec.org/p/syd/wpaper/2123-7632.html
   My bibliography  Save this paper

Bangladesh-India Bilateral Trade: Causes of Imbalance and Measures for Improvement

Author

Listed:
  • Rahman, Mohammad Mafizur

Abstract

The study underscores the trend, structure and current picture of Bangladesh-India trade. Bangladesh has always been trade deficit with India, and recently it has increased exponentially. Limited export base, backward industries, inadequate infrastructure, appreciation of Bangladesh's Taka against Indian Rupee, earlier and faster trade liberalization program in Bangladesh compared to India, tariff and non-tariff barriers (NTBs) imposed by the Indian government, huge illegal trade, diversified exports and technologically advanced industrial base of India are identified as the main reasons of this huge trade imbalance. Sound physical, social and economic infrastructure, superior product quality, export diversification, huge domestic and foreign investments, joint ventures in Bangladesh with buy back arrangements, competitive devaluation of the Bangladesh currency against the Indian currency, removal of illegal trade, tariff and NTBs- free entry of Bangladesh's exports to Indian market, etc. are suggested to improve this trade deficit. Also cordial and productive cooperation between these two nations is crucial to materialize these measures.

Suggested Citation

  • Rahman, Mohammad Mafizur, 2005. "Bangladesh-India Bilateral Trade: Causes of Imbalance and Measures for Improvement," Working Papers 1, University of Sydney, School of Economics.
    • Handle: RePEc:syd:wpaper:2123/7632
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/2123/7632
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sanjib Pohit & Nisha Taneja, 2003. "India's Informal Trade with Bangladesh: A Qualitative Assessment," The World Economy, Wiley Blackwell, vol. 26(8), pages 1187-1214, August.
    2. Kojima, Kiyoshi, 1964. "The Pattern of International Trade Among Advanced Countries," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 5(1), pages 16-36, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hossain, Ekram & Dechun, HUANG & ZHANG, Changzheng & Neequaye, Ebenezer Nickson & Van, Vu Thi & Ali, Mohammad, 2021. "Trade Deficit of Bangladesh with China: Patterns, Propensity and Policy Implications," OSF Preprints 7j9vh, Center for Open Science.
    2. Suparna Basu & Debabrata Datta, 2007. "India–Bangladesh Trade Deficit and Misaligned Bilateral Exchange Rate: Can Bangladesh Draw Lessons from Indonesia?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 12(1), pages 76-102.
    3. Kumar, Rajiv & Singh, Manjeeta, 2009. "India’s Role in South Asia Trade and Investment Integration," Working Papers on Regional Economic Integration 32, Asian Development Bank.
    4. Anisul M. Islam, 2019. "Bangladesh Trade with India: Trends and Patterns," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 5(2), pages 123-140, April.
    5. Anisul M. Islam, 2018. "Inter- and Intra-industry Trade Relations between Bangladesh and India: Empirical Results," FIIB Business Review, , vol. 7(4), pages 280-292, December.
    6. Alam, Kazi Ashraful & Uddin, Gazi Salah & Alam, Md. Mahmudul, 2019. "Trade Patterns of Bangladesh with India and China: An Empirical Evidence of the PPP Theory," OSF Preprints 4rcgw, Center for Open Science.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kumar, Sushil & Ahmed, Shahid, 2014. "Growth and Pattern of Intra-Industry Trade between India and Bangladesh: 1975–2010," MPRA Paper 61113, University Library of Munich, Germany, revised 29 Dec 2014.
    2. Rui Liu & Xiaohua Tang & Cuiming Zhao & Zifan Shen & Ru Li & Jiangang Yu, 2024. "Research on the International Competitiveness and Sustainable Trade Development of the Key Equipment and Components of China’s High-Speed Rail," Sustainability, MDPI, vol. 16(16), pages 1-17, August.
    3. Koopmann, Georg & Vogel, Lars, 2011. "Globalisierung, Regionalisierung und die Handelspolitik der Europäischen Union," HWWI Policy Papers 58, Hamburg Institute of International Economics (HWWI).
    4. Pradyut Guha & Rangalal Mohapatra, 2016. "Intensity and Pattern of Border Trade in India’s Northeast," Foreign Trade Review, , vol. 51(3), pages 248-265, August.
    5. Tiken Das & Pradyut Guha, 2022. "Indo‐ASEAN Trade Complementarity and Favourability with Transition from Look East to Act East Policy: Evidence from Northeastern States of India," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(2), pages 215-243, April.
    6. Wajid Islam & Junaid Ahmed & Amjad Masood, 2022. "Unlocking Markets: Assessing Pakistan’s Trade Potential with Gulf Cooperation Council Members," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 27(2), pages 21-38, July-Dec.
    7. Donald R. Davis & David E. Weinstein, 2002. "What Role for Empirics in International Trade?," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 57(04), pages 441-468, December.
    8. Amita Batra, 2010. "Asian Economic Integration ASEAN+3+1 or ASEAN+1s?," Working Papers id:2734, eSocialSciences.
    9. Prakash Chandra Adhikary & Md. Sirazuddin Biswas, 1991. "Potential Gains to Bangladesh for Imports of Selected Commodities from India and Pakistan: An Analytic Investigation," India Quarterly: A Journal of International Affairs, , vol. 47(4), pages 63-82, July.
    10. Maria Crescimanno & Domenico Farruggia & Antonino Galati & Dario Siggia, 2013. "Intensit? degli scambi agroalimentari tra i Paesi del bacino del Mediterraneo," Economia agro-alimentare, FrancoAngeli Editore, vol. 15(1), pages 13-35.
    11. United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West (ed.), 2012. "Regional Cooperation for Inclusive and Sustainable Development: South and South-West Asia Development Report 2012-2013," SSWA Books and Research Reports, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office, number brr4, May.
    12. Carton, Christine & Slim, Sadri, 2018. "Trade misinvoicing in OECD countries: what can we learn from bilateral trade intensity indices?," MPRA Paper 85703, University Library of Munich, Germany.
    13. repec:kap:iaecre:v:14:y:2008:i:4:p:355-368 is not listed on IDEAS
    14. Sayeeda Bano, 2014. "Trade Relations between New Zealand and China: An Empirical Analysis in the Context of a Free Trade Agreement," Review of Economics & Finance, Better Advances Press, Canada, vol. 4, pages 75-92, November.
    15. Amita Batra, 2006. "Asian Economic Integration: ASEAN+3+1 or ASEAN+1s?," Indian Council for Research on International Economic Relations, New Delhi Working Papers 186, Indian Council for Research on International Economic Relations, New Delhi, India.
    16. Viet HOANG, 2018. "Assessing the agricultural trade complementarity of the Association of Southeast Asian Nations countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 64(10), pages 464-475.
    17. repec:mth:ijafr8:v:8:y:2018:i:4:p:22-59 is not listed on IDEAS
    18. de Frutos, Pablo, 2020. "Changes in world patterns of wild edible mushrooms use measured through international trade flows," Forest Policy and Economics, Elsevier, vol. 112(C).
    19. Widodo, Tri, 2009. "Modified Grubel-Lloyd Index: Intra-industry Trade and Intra-regional Trade in East Asia," MPRA Paper 77992, University Library of Munich, Germany.
    20. Mary Lovely & Douglas Nelson, 2002. "Intra-industry trade as an indicator of labor market adjustment," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(2), pages 179-206, June.
    21. Setyastuti, Rini & Adiningsih, Sri & Widodo, Tri, 2018. "ASEAN Economic Community: Theoretical versus Practical Economic Integration," MPRA Paper 86919, University Library of Munich, Germany.
    22. Nigel Grimwade & David G. Mayes & Jiao Wang, 2011. "Estimating the Effects of Integration," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume III, chapter 13, Edward Elgar Publishing.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:syd:wpaper:2123/7632. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Vanessa Holcombe (email available below). General contact details of provider: https://edirc.repec.org/data/deusyau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.