This study investigates the Revealed Comparative Advantage (RCA) analysis for the Ready-Made Garment (RMG) sector of Bangladesh along with few other selected countries like India, Sri Lanka, Vietnam, Pakistan, China, Cambodia, and Turkey to explore the impact assessment on the US-GSP suspension for Bangladesh. It aims to explore how US-GSP suspension influences Bangladesh’s manufacturing sectors and the export of RMG goods.
This study uses the RCA framework to analyze the extent of export competition amongst Bangladesh and other selected competitors. For this purpose, the study has applied Balassa’s (1965) Index for the analysis.
It argues that the degree of competition among other selected competitors will intensify with implementing the US-GSP requirements to get the GSP facilities to the US market. After the suspension of US– GSP, Bangladesh’s export share to the US market has decreased from 5.97 to 5.67 percent, amounting to US$ 134.64 million. On the other destination, EU–market share is at a steady-state situation for Bangladesh’s RMG sector. This indicates that the US–GSP status is very important to enhance a positive image and increase the world market's trade volume.
This paper contributes to the literature by investigating whether the US- GSP has any significant influence on the trade flow of Bangladesh. As this study has been based on a quantitative analysis using the Pre and Post US- GSP suspension RMG export flows from Bangladesh to the USA market, it is expected to help in policy implication regarding product and marked desertification of Bangladesh’s RMG industry.
Upcomming Insearch Conference 2021
Today 1