Effect of Trade Openness on Economic Growth of Bangladesh Economy : The Trade openness and Growth

The book examines the impact of trade liberalization and deregulation on the Bangladesh economy between the periods 1980 to 2009. The book analyzes the achievements of the economy in terms of important variables such as growth, inflation and the trade balance. An analysis is for the most part descriptive relying on tables and graphs. However, the findings in these chapters are put to test by econometric analysis towards the end. The analysis clearly indicates that GDP growth increased consequent to liberalization and deregulation. Trade liberalization does not seem to have aftected inflation in the economy. The quantitative analysis also suggests that greater openness has had a favourable effect on economic development. Both real export and imports have increased with greater openness. Liberalization policy certainly improves export of the country which eventually leads higher economic growth after 1990s. The average degree of openness sharply increases more than double after the year 2000 than the last decade. Despite of this improvement after liberalization the average trade balance of Bangladesh remains in deficit.