Export-Led Growth in Bangladesh: A Functional Impact Analysis of Export Performance and its Contribution

Abstract

Bangladesh has a significant opportunity to boost economic development by increasing its contributions to international trade. Therefore, this study is aimed at presenting the trends of exporting in the early stages of economic development. Bangladesh's foreign trade trends from 2015 to 2019 revealed a positive growth trajectory despite a slight dip in goods imports. The anticipated decline in foreign trade performance in 2020 is reflective of the global challenges faced during the COVID-19 pandemic. Moreover, the rate of receiving foreign exchange from the integrated foreign export of shrimp, leather, shoes, and pharmaceutical products is constantly increasing. The main exports, encompassing products like clothing, raw jute, leather, fish, and frozen seafood, play a vital role in driving the country's export dynamics. The country has achieved remarkable success in export expansion because of the RMG industry. It was found that total exports of goods rose to 37.94 billion U.S. dollars in 2019. However, the subsequent recovery in 2021 is evident, with notable growth in both imports and exports. Despite a persistently negative trade balance, the resilience showcased by Bangladesh in the face of challenges underscores its ability to rebound and adapt to changing circumstances.