An Analysis of the Trade Competitiveness of Non-RMG Sectors of Bangladesh
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This study investigates the comparative advantage and competitiveness of Bangladesh's non-RMG sectors. This study focused on the leather and leather-related goods, fish, shrimp, prawn, footwear, and pharmaceutical industries to meet Bangladesh’s export diversification imperative. Applying quantitative methodologies including Revealed Comparative Advantage (RCA), Revealed Symmetrical Comparative Advantage (RSCA), Relative Trade Advantage Index (RTA), Net Export Index (NEI), and Export Market Share (EMS), this study evaluates each sector’s competitiveness spanning from 2001 to 2022. The findings reveal that the jute and jute products, fish and fish items, leather and leather goods, footwear, and bicycle sectors have comparative advantages and overall net competitiveness in international trade. Jute and jute products have the highest competitiveness, but only footwear and bicycles show an upward trend. Bangladesh has a higher comparative advantage in leather hides and skins, which are the raw materials used in the leather-based footwear industry. However, ceramic products, ship-built products, fruits, vegetables, and pharmaceutical products are in a comparative disadvantageous position in the international market. Bangladesh has lost its comparative advantage in fish and fish items over the past two decades. Therefore, policymakers and industry stakeholders can focus on value addition in the footwear, leather, and Jute sectors to diversify the existing export product concentration.
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