Trade Deficit of Bangladesh with China: Patterns, Propensity and Policy Implications

This paper aims to examine export, import and trade intensity, export specialization index, Herfindahl-Hirschman index for bilateral concentration and diversification indices to analyze the specializations, structure and trends of deficit in bilateral trade between Bangladesh and China from 1995 to 2018 and policy recommendations in this regard. The results reveal that the gap of export and import intensity between Bangladesh and China is widening rapidly perennial. The export specialization indices expose very significant outcomes where among the analyzed 16 sectors; 6 sectors exhibit high specialization, 3 sectors demonstrate medium, 3 sectors exhibit low and the rest of the 4 sectors disclose no specialization for Bangladesh’s export to China. The findings of the Herfindahl-Hirschman Index (HHI) reveal that from 1995 to 2010 the export of Bangladesh to China concentrated within few sectors but from the year 2011 to 2018 the export has been reclassifying steadily into diversification. The overall analysis of the indices suggests the necessity to be improved of the level of intra-industry trade between China and Bangladesh. Moreover, emphasis should be given to the sectors having a high specialization that endure the capacity to narrow the trade deficit. Furthermore, the export baskets of Bangladesh to China require to be diversified. Hereafter, various measures and implications are also suggested in the policy recommendation for further improvement.

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Inter- and Intra-industry Trade Relations between Bangladesh and India: Empirical Results

FIIB Business Review ◽

10.1177/2319714518805182 ◽

2018 ◽

Vol 7 (4) ◽

pp. 280-292

Author(s):

Anisul M. Islam

Keyword(s):

Comparative Advantage ◽

Relative Position ◽

Bilateral Trade ◽

Trade Deficit ◽

Major Product ◽

Global Trade ◽

Industry Trade ◽

Product Categories ◽

Trade Relations ◽

Economic Ties

Bangladesh and India are two neighbouring countries in South Asia having strong political, diplomatic, trade and economic ties with each other. This article reviews and updates on the inter- and intra-industry trade relationship between these two countries using more recent data. More specifically, it examines the relative position of the two countries in global trade followed by trends and patters of bilateral trade using aggregative data. At a disaggregate level, the commodity composition of Bangladesh exports to and imports from India by major product categories is examined focusing on the revealed comparative advantage (RCA) to review and update the degree of inter-industry trade. Further, the Grubel–Lloyd index (GLI; Grubel & Lloyd, 1975 ) is examined to measure the degree of intra-industry trade by major commodity groups. The article finds that India has a much stronger relative position in the global trade vis-à-vis Bangladesh. India is also found to dominate Bangladesh in bilateral trade, resulting in a very large and persistent trade deficit of Bangladesh with India. At a disaggregated level, the article finds that India has a comparative advantage in more products than Bangladesh and that the GLI shows that the degree of intra-industry trade is almost negligible between the two countries.

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HOW DOES BUSINESS CULTURE AFFECT PERFORMANCE IN THE US-JAPAN BILATERAL AUTO TRADE?: WILL A REVENUE-MAXIMIZER BE THE WINNER?

Journal of Enterprising Culture ◽

10.1142/s0218495897000235 ◽

1997 ◽

Vol 05 (04) ◽

pp. 403-421

Author(s):

NAOKI TABETA ◽

RUIFANG WANG

Keyword(s):

Bilateral Trade ◽

Trade Deficit ◽

Analytical Framework ◽

Policy Implications ◽

Business Culture ◽

Strategic Behaviour ◽

Trade Friction ◽

The Us ◽

Quantity Adjustment ◽

Duopolistic Market

This paper attempts to provide a new explanation of the huge trade deficit of US against Japan based on an analysis of different strategic behaviours between US firms and Japanese firms. More specifically, we intend to answer the following questions: (1) How do business culture and institutional arrangements affect a firm's strategic behaviour? (2) Who will be the winner when a profit-maximizer meets a revenue-maximizer under a simple duopolistic competition framework? (3) What are the policy implications of this analytical framework for the US-Japan bilateral trade? Why does the trade friction cyclically occur between two countries? Using a simple Cournot (quantity adjustment) model for a duopolistic market, we show that a revenue-maximizer will be the winner when it meets a profit-maximizer; that is, it will obtain a larger market share and a higher profit [i.e., in our terminology, the revenue-maximizer dominance hypothesis].

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EU-Korea FTA and Its Impact on V4 Economies. A Comparative Analysis of Trade Sophistication and Intra-Industry Trade

Comparative Economic Research ◽

10.2478/cer-2018-0001 ◽

2018 ◽

Vol 21 (1) ◽

pp. 5-23 ◽

Cited By ~ 1

Author(s):

Bartosz Michalski

Keyword(s):

Bilateral Trade ◽

Slovak Republic ◽

Trade Deficit ◽

Trade Agreement ◽

Republic Of Korea ◽

The European Union ◽

Middle Income ◽

Industry Trade ◽

South Korean ◽

The Republic

This paper investigates selected short- and mid-term effects in trade in goods between the Visegrad countries (V4: the Czech Republic, Hungary, Poland and the Slovak Republic) and the Republic of Korea under the framework of the Free Trade Agreement between the European Union and the Republic of Korea. This Agreement is described in the “Trade for All” (2015: 9) strategy as the most ambitious trade deal ever implemented by the EU. The primary purpose of our analysis is to identify, compare, and evaluate the evolution of the technological sophistication of bilateral exports and imports. Another dimension of the paper concentrates on the developments within intra-industry trade. Moreover, these objectives are approached taking into account the context of the South Korean direct investment inflow to the V4. The evaluation of technological sophistication is based on UNCTAD’s methodology, while the intensity of intra-industry trade is measured by the GL-index and identification of its subcategories (horizontal and vertical trade). The analysis covers the timespan 2001–2015. The novelty of the paper lies in the fact that the study of South Korean-V4 trade relations has not so far been carried out from this perspective. Thus this paper investigates interesting phenomena identified in the trade between the Republic of Korea (ROK) and V4 economies. The main findings imply an impact of South Korean direct investments on trade. This is represented by the trade deficit of the V4 with ROK and the structure of bilateral trade in terms of its technological sophistication. South Korean investments might also have had positive consequences for the evolution of IIT, particularly in the machinery sector. The political interpretation indicates that they may strengthen common threats associated with the middle-income trap, particularly the technological gap and the emphasis placed on lower costs of production.

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Currency Manipulations and Bilateral Trade Between China and the USA

Foreign Trade Review ◽

10.1177/0015732516681869 ◽

2017 ◽

Vol 52 (3) ◽

pp. 171-184 ◽

Cited By ~ 2

Author(s):

Masoud Moghaddam ◽

Jie Duan

Keyword(s):

Exchange Rate ◽

Gravity Model ◽

Bilateral Trade ◽

Trade Deficit ◽

The Us ◽

Spot Exchange Rate ◽

Main Culprit ◽

Long Time ◽

The Usa ◽

Strong Relation

The US trade deficit with China has existed for a long time, and its dollar value has been on the rise recently. It is widely believed that the main culprit is the manipulated value of Renminbi relative to the US dollar. Towards that end, this article re-examines the spot exchange rate and bilateral trade nexus using the Fourier approximation and a variant of the well-known gravity model during the sample period 1993: q1–2014: q1. Although China’s exports to the US Granger cause the exchange rate in a co-integrated space, the findings of a vector error correction model indicate that there is not a strong relation between the two. Indeed, within the aforementioned sample, only 15.52 per cent of changes in China’s exports to the USA are attributable to changes in the spot exchange rate. This is noticeably much smaller than impacts of the other variables utilized in the estimated gravity model. As such, the palpable trade imbalance between the USA and China cannot be single-handedly blamed on the spot exchange rate manipulations.

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The Thucydides Trap as an Alternative Explanation for the US–China Trade War

Global Journal of Emerging Market Economies ◽

10.1177/0974910119896644 ◽

2020 ◽

Vol 12 (1) ◽

pp. 42-55 ◽

Cited By ~ 4

Author(s):

Imad A. Moosa

Keyword(s):

Alternative Explanation ◽

Bilateral Trade ◽

National Income ◽

Trade Deficit ◽

Basic Principles ◽

China Trade ◽

The Us ◽

The Usa ◽

Thucydides Trap ◽

Trade War

The current trade war between the USA and China is perceived to be motivated by the US desire to curtail the bilateral trade deficit, on the assumption that reducing the deficit boosts economic growth. This flawed proposition indicates gross misunderstanding of the national income identity and the basic principles of macroeconomics. The imposition of tariffs will not reduce the trade deficit as the assumptions and conditions required for a smooth working of the process are unrealistic and counterfactual. The notion of an economic Thucydides trap is put forward to explain why the trade war is motivated by US apprehension about China’s rising economic power.

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Measures of intra-industry trade reconsidered with reference to Singapore’s bilateral trade with Japan and the United States

Weltwirtschaftliches Archiv ◽

10.1007/bf02707812 ◽

1996 ◽

Vol 132 (2) ◽

pp. 378-389 ◽

Cited By ~ 10

Author(s):

Ramkishen S. Rajan

Keyword(s):

United States ◽

Bilateral Trade ◽

The United States ◽

Industry Trade

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Volume, intensity and intra-industrial proportion of bilateral trade between Mexico and the United States 1981-2017

Norteamérica ◽

10.22201/cisan.24487228e.2020.1.416 ◽

1969 ◽

Vol 15 (1) ◽

Author(s):

Dulce Albarrán Macías

Keyword(s):

United States ◽

Economic Integration ◽

Vertical Integration ◽

Growth Rates ◽

World Trade ◽

Bilateral Trade ◽

The United States ◽

Trade Intensity ◽

Trade Volume ◽

Production Processes

The aim of this paper is to characterize the bilateral trade between Mexico and the United States during the period 1981-2017, highlighting the effects of Mexico's accession to the GATT and the entry into force of NAFTA, as well as the entry of China into the WTO. Although there have been decelerations at some point, results show an increase in trade volume and, consequently, in the intensity of bilateral trade, but in the latter case with some falls resulting from the different growth rates of world trade. Intra-industrial trade, meanwhile, recorded sustained growth, which could reflect a greater vertical integration of production processes. Keywords: trade volume, trade intensity, intra-industrial trade, Grubel and Lloyd index added and corrected, economic integration.

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Ex Post Review and Expert Policymaking: When Does Oversight Reduce Accountability?

10.31235/osf.io/ugsqc ◽

2021 ◽

Author(s):

John Patty ◽

Ian R Turner

Keyword(s):

Institutional Design ◽

Policy Decision ◽

Policy Choice ◽

Policy Recommendations ◽

Policy Recommendation ◽

Policy Choices ◽

Policy Goals ◽

Ex Post

Ex post review is a common feature of policymaking institutions. We consider an environment in which an expert agent makes a policy recommendation, which can then be accepted or rejected by an overseer whose policy goals differ from those of the agent. The theory suggests that both behavior and optimal institutional design are sensitive to several factors, including actors' preference alignment, the importance of the policy decision, and the uncertainty about the correct policy choice. We characterize the types of situations in which ex post review creates incentives for the agent to make pathological policy choices. In these situations, ex post review can reduce accountability of the agent to overseer wishes and ultimately provide incentives to set aside review entirely. The theory also offers testable predictions about policy recommendations and the overseer's acceptance or rejection of these recommendations.

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An International Comparative Study Of Per Capita Consumption Of Import: Implications For U.S-Japan Trade

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v17i1.2066 ◽

2011 ◽

Vol 17 (1) ◽

Author(s):

Tyler T. Yu ◽

Miranda M. Zhang

Keyword(s):

Bilateral Trade ◽

Trade Deficit ◽

Capita Consumption ◽

Trade Barriers ◽

Font Size ◽

Significant Difference ◽

Per Capita ◽

International Comparative ◽

Per Capita Consumption ◽

The U.S

This paper discusses the per-capita consumption of imports aspect of international trade.  A research hypothesis is tested to investigate if there is a significant difference among G-7 countries in per-capita consumption of imports and the implication of the testing results for the U.S. - Japan bilateral trade deficit.  The results of the ANOVA and the Kruskal-Wallis test yield insignificant variation in per-capita consumption of imported goods/services among the G-7 countries.  The study recapitulates the reason(s) for the U.S. trade deficit with Japan and essentially states that factors other than trade barriers and restrictions cause the U.S. trade deficit with Japan.  While this result may initially seem counterintuitive and inconsistent with popular wisdom, it may actually help uncover the true causes for the sustained trade deficit with Japan.

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