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GTAP Resource #6703

"Costs of LDC Graduation on Market Access: Evidence from Emerging Bangladesh. "
by Rahman, Masud

We empirically estimate the costs of LDC graduation on market access for Bangladesh using a computable general equilibrium modelling framework. If developed countries impose standard generalized system of preferences (GSP) tariffs while importing from Bangladesh and at the same time Bangladesh eliminates its export subsidies, our modelling suggests that real gross domestic product (GDP) may drop by about 0.38 percent and exports could fall by about six percent for Bangladesh. The ready-made garment sector could be affected severely, with results suggesting exports could decline by about 14 percent. Our analysis indicates that the income of urban households could decrease by three percent, and household consumption may shrink by about four percent. To minimize these potentially adverse impacts, Bangladesh should aim to ensure market access continues through signing preferential trade agreements. In addition, streamlined subsidy policies, enhanced domestic productivity, export diversification, and increased foreign investment, are likely to be important areas of focus for a smooth LDC graduation.

Resource Details (Export Citation) GTAP Keywords
Category: Other CGE Application
Status: Published
By/In: Economic Systems Research
Date: 2022
Created: Rahman, M. (11/4/2022)
Updated: Batta, G. (11/4/2022)
Visits: 263
- Calibration and parameter estimation
- Dynamic modeling
- Model extension/development
- Economic development
- Non-Tariff barriers
- Trade in textiles and wearing apparel
- Asia (South-Central)

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