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Expanding and Diversifying Exports in Bangladesh: Challenges and the Way Forward
Bangladesh should consider a raft of policy reforms to help diversify and strengthen its export capacity beyond ready-made garments (RMG) to smooth its upcoming graduation from least developed country status, this brief explains.
Highlighting how RMGs make up over 80% of Bangladesh’s merchandise exports, the brief explains how high tariff protections, weak product standards and compliance, and policy-induced anti-export biases have combined to stymy diversification. It shows how attracting foreign direct investment, tackling the high cost of doing business, and boosting the quality and performance of alternative sectors would broaden Bangladesh’s export competitiveness as its economic status evolves.
Highlighting how RMGs make up over 80% of Bangladesh’s merchandise exports, the brief explains how high tariff protections, weak product standards and compliance, and policy-induced anti-export biases have combined to stymy diversification. It shows how attracting foreign direct investment, tackling the high cost of doing business, and boosting the quality and performance of alternative sectors would broaden Bangladesh’s export competitiveness as its economic status evolves.
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