9310732_20180205.docx - Journal of Social Sciences and...

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Journal of Social Sciences and Humanities2018; x(x): xx-xxAbstract: The average growth of GDP of Bangladesh is over6.5% since 2004 which is largely driven by its exports of ready-made garments (RMG), remittances and the domestic agriculturalsector. It is also found that the export grew at the rate 16.31% ofover the last 26 years from the fiscal year 1990 to 2016 waswhich paly an important role to expand the GDP of Bangladeshand thus contributes to reduce the poverty level. The total exporthas increased to 47 times in fiscal 2016 compare to 1990. Theexport was 4.99% of the GDP in 1990 (at current market price)whereas in 2016 it stood to 13.67% of GDP. Over the last 26years, the ratio of export to GDP has increased to 4.07% per yearon an average. This boost expand of export is mainly driven bythe rich and constant growth of the readymade Garments, RMG(including Knit Wear & Hosiery) sector which grew at the rateof 18% per year. RMG contributes almost 69% (excluding EPZ)of the total export in the year 2016 whereas it was 38.95% of thetotal export in 1990. The Tea grew negatively at the rate of-8.49%. Although the growths of Jute; Fish & Shrimp; andLeather were positive which were 7.61%, 7.92%, and 8.56%respectively but the shares of all the products along with Tea tothe total export have fallen drastically over the last 26 yearswhich is not a good sign for the overall export in the comingyear. This has to be taken seriously by policy makers.Keywords: Export, GDP, RMG, Growth rateIntroductionExport means all transfers of the ownership of goods fromresidents of a country to non-residents and servicesprovided by resident’s producers of the country to non-residents are to be covered. It is not simply to send goodsor services across national borders for the purpose ofselling and realizing foreign exchange. For manydeveloping countries, exports also serve the purpose ofearning foreign currency with which they can buy essentialimports- foreign products that they are not able tomanufacture, mine or grow at home. Developing countries,in other words, sell exports, in part, so that they canimport. Exporting goods and services can also furtheradvance developing nations’ domestic economies. Bangladesh’s export performance so far presents signs ofstrength in its export basket [17]. Export has a huge impacton the economy of a Nation like a developing country,Bangladesh whose huge percent of yearly Budget dependson Export that is, the foreign currencies.The economy Bangladesh has changed drastically in last30 years. The economy of Bangladesh is largely driven byits exports of ready-made garments (RMG), remittancesand the domestic agricultural sector. Ready-made garments(RMG) industry that now ranks second in export in theworld. Within a very short period of time it has become thelargest export earner of the country through a majorpositive forward thrust in the early 90s [20]. Bangladesh isexpected to come out of the least developed country(LDC) bracket and achieve the status of a mid-income

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