Export Trend in Bangladesh

As the report is exclusively related with the export trend of Bangladesh, so it will be ideal to know something about the definition of export. Export is one of the most preferable and conventional way to perform international business. In simplest word, export is traditional buying and selling across the border of the country. In economics, an export is any good or commodity, transported from one country to another country in a legitimate fashion, typically for use in trade. Export is an important part of international trade. Its counterpart is import. Export involve anything from transferring physical goods to intangible services with a view to earning profit, sometimes it results from arbitrary practice. According to the Encyclopedia of Britannica, export is To send or transport goods abroad out of a customs territory; to sever them from the mass of things belonging to one country with the intention of uniting them to the mass of things belonging to a foreign country.

Brief idea about the Export of Bangladesh
Like many other third-world developing countries, Bangladesh relies quite heavily on exports to provide for the needs of its densely populated nation. Today the economy of Bangladesh has largely depends on the export position of the country. Before the independence and after the independence the main source of budget fund came from the export revenue and till now it is the major indicator of countries growth and economic stability for its principle role in exchange rate determination and GDP. In over three decades, Bangladesh has witnessed substantial growth in its export of goods and services. The volume of export, the no of exporting countries and as well as the range of exporting goods have widen substantially. Bangladesh has experienced not only a substantial increase in the volume of exports but also important changes in the composition of those exports; moving away from traditional items such as jute and jute products and towards new manufactured products such as ready-made garments. Though the export of Bangladesh is growing faster then many countries in South Asia. Its import over-lead the effect of the export, so the trade deficit occurs, if we see the recent balance of payment of Bangladesh it will be clear,

1|Page Shofiur Rahman, MBA Program, Dhaka University

Table 1
Balance of Payments- current account [Annual Data]
Items 2009-10 July-June 2010-11 July-June % Changes 3 over 2

1 Trade balance
Export f.o.b.(including EPZ) Of which : Readymade garments Import f.o.b (including EPZ)

2 -5155
16233 12497 -21388

3 -7328
23008 17914 -30336 41.74 43.35 41.84

4

Services
Receipts Payments

-1233
2478 -3711

-2398
2570 -4968 3.71 33.87

Income
Receipts Payments Of which : Official interest payments

-1484
52 -1536 -215

-1354
119 -1473 -220

Current transfers
Official transfers Private transfers

11596
127
11469

12075
127
11948 4.18

Of which : Workers' remittances

10987

11650

6.03

Source: Data collected from Bangladesh Bank website. Notes – It is clearly reflected that exports receives are less than the import payments, so there is trade deficit occur, it is also important to notice that the percentage [%] increase in import is greater than the [%] increase in export.

2|Page Shofiur Rahman, MBA Program, Dhaka University

Export Growth of Bangladesh
1980 1981 1400000 1200000 1000000 800000 600000 1993 400000 200000 0 1980 2008-09 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991

Source: Bangladesh Bureau of Statistics

In FY 2011-12 (July-January), Bangladesh earned USD 13924.6 million export from January), that is 14.28 % more than that of the same period of the previous fiscal year. that However, under the business as usual scenario, despite the growth during the period of July 2011 to February 2012, it might be very difficult to maintain a double digit growth at the end of the fiscal year as the export from Bangladesh might be...