As the report is exclusively related with the export trend of Bangladesh, so it will be ideal to know something about the

definition of export. Export is one of the most preferable and conventional way to perform international business. In simplest word, export is traditional buying and selling across the border of the country. In economics, an export is any good or commodity, transported from one country to another country in a legitimate fashion, typically for use in trade. Export is an important part of international trade. Its counterpart is import. Export involve anything from transferring physical goods to intangible services with a view to earning profit, sometimes it results from arbitrary practice. According to the Encyclopedia of Britannica, export is To send or transport goods abroad out of a customs territory; to sever them from the mass of things belonging to one country with the intention of uniting them to the mass of things belonging to a foreign country.

Brief idea about the Export of Bangladesh

Like many other third-world developing countries, Bangladesh relies quite heavily on exports to provide for the needs of its densely populated nation. Today the economy of Bangladesh has largely depends on the export position of the country. Before the independence and after the independence the main source of budget fund came from the export revenue and till now it is the major indicator of countries growth and economic stability for its principle role in exchange rate determination and GDP. In over three decades, Bangladesh has witnessed substantial growth in its export of goods and services. The volume of export, the no of exporting countries and as well as the range of exporting goods have widen substantially. Bangladesh has experienced not only a substantial increase in the volume of exports but also important changes in the composition of those exports; moving away from traditional items such as jute and jute products and towards new manufactured products such as ready-made garments. Though the export of Bangladesh is growing faster then many countries in South Asia. Its import over-lead the effect of the export, so the trade deficit occurs, if we see the recent balance of payment of Bangladesh it will be clear,

1|Page Shofiur Rahman, MBA Program, Dhaka University

Table 1
Balance of Payments- current account [Annual Data]
Items 2009-10 July-June 2010-11 July-June % Changes 3 over 2

1 Trade balance
Export f.o.b.(including EPZ) Of which : Readymade garments Import f.o.b (including EPZ)

2 -5155
16233 12497 -21388

3 -7328
23008 17914 -30336 41.74 43.35 41.84

Services
Receipts Payments

-1233
2478 -3711

-2398
2570 -4968 3.71 33.87

Income
Receipts Payments Of which : Official interest payments

-1484
52 -1536 -215

-1354
119 -1473 -220

Current transfers
Official transfers Private transfers

11596
127
11469

12075
127
11948 4.18

Of which : Workers' remittances

10987

11650

6.03

Source: Data collected from Bangladesh Bank website. Notes It is clearly reflected that exports receives are less than the import payments, so there is trade deficit occur, it is also important to notice that the percentage [%] increase in import is greater than the [%] increase in export.

2|Page Shofiur Rahman, MBA Program, Dhaka University

Export Growth of Bangladesh

1980 1981 1400000 1200000 1000000 800000 600000 1993 400000 200000 0 1980 2008-09 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991

Source: Bangladesh Bureau of Statistics

In FY 2011-12 (July-January), Bangladesh earned USD 13924.6 million export from January), that is 14.28 % more than that of the same period of the previous fiscal year. that However, under the business as usual scenario, despite the growth during the period of July 2011 to February 2012, it might be very difficult to maintain a double digit growth at the end of the fiscal year as the export from Bangladesh might be hindered.

Snapshot of export market and product

Table 1

Trend in Export Trade (In product & market)

No. of Product No. of Market Total Export

1972-73 25 68 348 B

2010-2011 180 205 12500 B

Growth 620% 202% 3492%

Note The table indicates that the diversity of product and market increase significantly during 3 decades indicating the growth in export earning and compatibility in the world market.

3|Page Shofiur Rahman, MBA Progra Dhaka University Program,

Figure 1

Note The situation suggest the previous prime position of jute industry. Immediately after the liberation jute industry consist almost 90% of the total export and at the same time major source of budget and foreign currency. Tea and leather goods were the associate criteria of export. ciate

Bangladesh export by major goods during 1982 1982-83

leather chemical good rawjutes Tea others wovengarments frozen foods jutegoods

Figure 2

Note within this decades jute industry hold their no 1 position but there is a no-1 negative growth is experienced in export of jute. Woven garments introduce as a

4|Page Shofiur Rahman, MBA Progra Dhaka University Program,

potential criteria of export. Positive growth experienced in the industry of tea, leather and frozen foods.

Figure 3

Note- during year 82-92 a major decline in the export of jute industry. The export share decline 89% in 73 from around 20% in 1992. This is due to the poor control and managerial efficiency of the jute industry. Ignoring to transfer it to the private sector rather than operating with loss is one of the prime factors destroying this sector, although the demand of the jute was constant globally.

5|Page Shofiur Rahman, MBA Program, Dhaka University

Figure 4

Note- woven garments and knitwear become the major export good for Bangladesh as it holds almost 70% of the export amount of the country and a major source of foreign currency. Jute industry looses its previous position and become minor criteria. Tea and leather export also experience negative growth.

Bangladesh export by major goods during 2010-2011

Raw Jute Handicraft Others 2% 0% 11% Tea Fish, shrimp 0% s 3% Furnace Oil Fertilizer 0% 0% Leather 3% Jute Manufac 4%

Readymade Garment Jute Manufac Fish, shrimps Leather Furnace Oil Raw Jute Handicraft

Readymade Garment 77%

Tea Fertilizer Others

Figure 5

6|Page Shofiur Rahman, MBA Progra Dhaka University Program,

Note- During 2010-2011, readymade garments (woven garments& knitwear) retain its position and as it holds almost 7 % of the export amount of the country and a major 76% source of foreign currency. Jute and Leather industry decline compare to its previous position and become minor criteria. The export of tea and fertilizer experience zero growth.

Export direction [country wise export]

In this portion we have discussed the major importing countries from Bangladesh or in other word major exporting countries of Bangladesh. Country wise export volume

30000 20000 10000 0 2010-11

USA Netherlands Turkey

bdt crore

2009-10 10

2008-09
Germany Italy Belgium UK Canada India France Spain

Chart 1 Note- As regard the destination pattern of exports, the U.S.A. was the most prominent buyer which bought goods worth Tk. 26829 crore (21..5%) during the year under review as compared to Tk.19674.6 crore ( (22.5%) and Tk. 20634.3 crore (24.4%) in the previous two years respectively. During 2010 2010-11,The principal items of export to the U.S.A were readymade garments (Tk.24037.10 crore), fish, shrimps & prawns (Tk.695.90 crore), jute 695.90 manufactures (Tk.113.9 crore), leather and leather manufactures (Tk. 50 crore) and (Tk.64.50 raw jute (Tk. 21.60 crore). The second largest buyer of Bangladeshi goods was Germany. They purchased goods worth. 19455.7 Crore (15.6%) during the year under %) review as compared to Tk. 12412.2 crore (14.2%) and Tk. 12647.5 crore (14.9%) during (1 2009-2010 and 2008-2009 respctively The next important trading partner was the U.K. respctively. 7|Page Shofiur Rahman, MBA Progra Dhaka University Program,

Export earnings from the U.K. amounted to Taka. 11395.2 crore (9.1%) during the year 2010-2011 as compared to Tk. 8363.3 crore ( 9.5%) and Tk. 8240.3 crore ( 9.8%) during the years 2009-2010 and 2008-2009 respectively. France purchased goods worth Tk. 9368.1 crore (7.5%) during the year under review. The total export receipts from during 2009-2010 and 2008-2009 were Tk. 6117 crore (7%) and T k. 6295.7 crore (7.5%) respectively.Netherlands, Italy, Canada, Spain, Turkey, Belgium, and India followed in descending order of magnitude in respect of our export earnings and accounted for Tk. 7026.7 crore (5.6%), Tk. 5036 crore (4%), Tk.4994.2 crore (3.9%), Tk. 4503.2 crore (3.6%), Tk. 4310.6 crore (3.4%), Tk. 3383.3 crore (2.7%) and Tk. 3321.3 crore (2.6%) during 2010-2011 respectively.

Export share to GDP

The contribution of the export sector to Bangladeshs GDP has been gradually increasing over the years. Export share in GDP was 5.45 percent in FY 1990-91 while this share reached at 20.07 percent in FY 2010-11, reflecting an increase of 15.02 percent in GDP contribution within twenty years. This contribution might increase further in FY 2011-12, FY 2012-13 and FY 2013-14 at 21.48, 21.67 and 21.85 percent respectively

The further growth are reflected in the data table, 90-91 Export US$-ml Growth Rate Export % of GDP 7.3 13.67 11.2 13.1 14.37 16.63 20.47 20 276.4 11.8 29.4 21.9 29.9 122.3 1718 00-01
02-03 03-04 04-05 05-06 2010-11

6467.3 5835.7 7416

8679.4 10315 22928.2

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Recommendation:
Although Bangladesh has achieved a substantial growth rate in export, the commodity concentration and also the market concentration has been the key concern for government for the retention of that growth rate. Because the export products and market are not diversified and export can be diminish with the decrease in need of certain product or as a result of higher competition. So, This excessive dependence on a few export items and markets reflects the vulnerability of Bangladeshs external sector. So export diversification and market diversification continue to remain major challenges.

Domestic supply side constraints are major reasons for a narrow export base. To realize Bangladeshs potential export opportunities, supply-side constraints need to be addressed immediately. Supply-side bottlenecks relate to infrastructure, communications, ports, capacity in implementing export incentive regime, functioning of export-related institutions, and proper governance. Appropriate macroeconomic policies including price stability and an appropriate exchange rate must be ensured. Bangladesh Bank, the central bank of Bangladesh, must take appropriate steps independently in this regard. The government must also contribute by playing a helping role to maintain the price stability. Prudent fiscal policy, for example, would be helpful in this regard. Adequate infrastructure must be built to facilitate the countrys exports. Sufficient investments, both from internal and external sources, are vital to improve the existing infrastructure facilities. Foreign direct investment can play a contributory role in this regard. The government must create a favorable investment environment by improving law and order situation and controlling corruption.
Proper quality of exportable items must be maintained to meet foreign demand. Better education and training to the workers and managers in the export industries, establishment of more technical schools and colleges, import of improved technology

for export industries, and closed and regular product supervision can ensure the
quality of exportable items. 9|Page Shofiur Rahman, MBA Program, Dhaka University

Close partnership between the Government and the business community is crucial. Honest businessmen, who are really contributing to the economy, deserve all kinds of cooperation from the government. A clear and constructive understanding between these two groups can undoubtedly improve the countrys export performance. The government and the business community must work hard for export and market diversification. Efforts must be made to increase the export of traditional items. Frequent export fairs through the foreign missions can be helpful to introduce new exportable items to foreign buyers. The search for new markets for Bangladeshs exports should be a continuous task for both the government and businessmen.

Conclusion:
Despite the structural limitations of the Bangladesh economy, the export sector performed well throughout the 1990s. The export-GDP ratio, import GDP ratio and trade-GDP ratio have increased over the years. The growth rate of export- GDP ratio of Bangladesh was the highest during 1980-2002 among the SAARC countries. However, the balance of trade of Bangladesh remained in deficit.

The striking features for the Bangladeshs exports are commodity and market concentration. This is the main concern. To address it, there is no alternative but to initiate diversification and quality improvements. New markets for the countrys exports must also be explored to secure more stability in the export sector. To reduce the dependence on imported inputs for the readymade garments and knitwear industries, Bangladesh must make massive investments in both yarn and fabric manufactures. This would create forward and backward linkages; and current trade deficit would improve.

10 | P a g e Shofiur Rahman, MBA Program, Dhaka University