Trade-restricting impacts of non-tariff measures in Bangladesh

Rahman, Mohammad Masudur; Strutt, Anna

doi:10.1080/13547860.2021.1963043

Cited by 2 publications

(2 citation statements)

References 40 publications

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“…Bangladesh faces ongoing challenges in comprehending the rules and regulations of the export market (Rahman & Strutt, 2023), discerning consumer preferences for goods (Demidova et al, 2012), and recognizing cultural nuances (Ullah & Ming Yit Ho, 2021). Nevertheless, cultural disparities lead to ambiguity, a dearth of confidence, and misinterpretations, all of which result in higher trade costs in Bangladesh and often create difficulties in forming and maintaining long-term relationships with trading partners.…”

Section: Cultural Distance and Tradementioning

confidence: 99%

Cultural distance and bilateral trade: A transitional economy perspective

Mostafiz,

Akter,

Rahman

2024

Bus Strat Dev

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Cultural differences represent significant trade barriers between transitional economies and their trading partners, which has been overlooked in recent studies. This paper investigates the effect of cultural distance (CD) on bilateral trade from Bangladesh. We conceptualize a research model by employing the extended gravity model as a theoretical base, where we amplify the theory by proposing that linguistic distance (LD) as a part of cultural distance has a profound effect on bilateral trade based on bilateral trade data from 1995 to 2019 and Hofstede's culture indices between Bangladesh and 157 trading partner countries. Using a pseudo‐poisson maximum likelihood model, we find that cultural distance has a significant and negative impact on Bangladesh's trade, with a significance level of 1%. Our empirical results indicate that one unit increase in cultural distance decreases trade by 40.84% and cultural distance has a greater impact on Bangladesh's exports than on its imports. Findings also reveal that the effect is substantial with high‐income nations than with low‐income nations, and for manufacturing products than primary products trade. Further, this study suggests that in addition to cultural distance (CD), linguistic distance (LD) from trading partners has a tantamount effect on bilateral trade, which is significant at 1%. Theoretically, this study suggests that linguistic distance (LD) should be added on gravity model for analyzing effects of cultural distance on bilateral and multilateral trade. Practically, this study contributes by providing valuable insights to policymakers to pay attention to cultural differences, especially during these economic transition periods to increase bilateral trade.

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Section: Cultural Distance and Tradementioning

confidence: 99%

Cultural distance and bilateral trade: A transitional economy perspective

Mostafiz,

Akter,

Rahman

2024

Bus Strat Dev

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“…Dhingra et al (2023) found an explicit and significant impact of deep trade agreements in stimulating international economic integration, which substantially increases trade between countries. Rahman and Strutt (2023) inferred that Bangladesh should focus on reducing the trade costs levied by tariff and non-tariff measures to realize its trade potential. In addition to tariff reduction and quota restrictions, Bangladesh should focus on forming multilateral, regional, and bilateral trade negotiations to achieve lower trade costs imposed by NTMs and better trade facilitation.…”

Section: Literature Reviewmentioning

confidence: 99%

China’s Duty-Free Trade Policy to Bangladeshi Products: A Potential Trade and Economic Effects Analysis Using Partial and Computable General Equilibrium Model

Islam,

Fatema,

Akter

2024

Sage Open

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China is one of the critical and strategic trading partners of Bangladesh. The Chinese government has declared a zero-tariff facility for 97% of products imported from Bangladesh. The objective of the study is to analyze the effects of the facilitating trade policy on the trade performance of different sectors of Bangladesh. The study applies partial equilibrium SMART simulations, which are accessible in WITS, and the general equilibrium CGE model with GTAP as the methodological tools to quantify the impact of China’s preferential trade policy on trade and the overall economy of Bangladesh. The results of partial equilibrium analysis show that the preferential trade policy substantially positively impacts Bangladesh’s exports to the Chinese market. The results also suggest that the change in total trade under China’s new preferential trade policy is around $58.99 million, with a trade creation of $ 52.16 million and a trade diversion effect of US$ 6.83 million. The CGE analysis results show that China’s new trade policy will have little impact on Bangladesh’s real GDP, and the effects of the policy on exports vary across different sectors. However, the overall effects suggest that Bangladesh will earn a net welfare gain due to China’s new duty-free trade policy in Bangladesh. The findings of the study provide crucial policy suggestions on whether China’s latest tariff facilities will substantially impact the trade and economy of Bangladesh as well as provide foundations for analyzing the effects of future bilateral trade agreements.

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Trade-restricting impacts of non-tariff measures in Bangladesh

Cited by 2 publications

References 40 publications

Cultural distance and bilateral trade: A transitional economy perspective

Cultural distance and bilateral trade: A transitional economy perspective

China’s Duty-Free Trade Policy to Bangladeshi Products: A Potential Trade and Economic Effects Analysis Using Partial and Computable General Equilibrium Model

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