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GTAP Resource #6464

"Costs of LDC graduation on market Access"
by Rahman, Masud

The graduation of a least developed country (LDC) status to a developing country is a critical policy choice for many emerging economies as they will lose preferential market access in the most developed markets. Bangladesh is an important case study of an emerging trading nation that will graduate from LDC status to a developing country by 2026. Against this background, we empirically estimate the costs of LDC graduation using a computable general equilibrium modeling framework. The findings show that if developed countries impose a standard generalized system of preferences (GSP) tariffs while importing from Bangladesh and at the same time if Bangladesh eliminates its export subsidies, Bangladesh’s Gross Domestic Product (GDP) may drop by about 0.38 percent and exports could fall by about six percent. The ready-made garment sector could be affected severely, and export may decline by about 16.9 percent. The analysis indicates that the income of urban households could decrease by three percent, and household consumptions may shrink by about four percent

Resource Details (Export Citation) GTAP Keywords
Category: Other CGE Application
Status: Not published
Date: 2021
Created: Rahman, M. (11/16/2021)
Updated: Batta, G. (11/16/2021)
Visits: 467
No keywords have been specified.

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