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Determinants of Trade Balance of Bangladesh

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Submitted By hhossain
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DETERMINANTS OF TRADE BALANCE OF BANGLADESH

by

Mohammad Habib Hossain

A project submitted in partial fulfillment of the requirements for the degree of Professional Master in
Banking and Finance

Examination Committee:

Dr. Donyaprueth Krairit (Chairperson)
Dr. Sundar Venkatesh
Dr. W.A. Wijewardena

Nationality:
Previous Degree:

Bangladeshi
Bachelor of Business Administration
Khulna University
Khulna, Bangladesh

Scholarship Donor:

Bangladesh Bank

Asian Institute of Technology
School of Management
Thailand
February 2015

Acknowledgement
I would like to express my gratitude to my advisor Dr. Sundar Venkatesh, who supported and guided me throughout my research with much patience and empathy. I am thankful to the Asian Institute of Technology for arranging a professional master’s program for the working executives.
I am much obliged to Bangladesh Bank (Central Bank of Bangladesh) for granting me the scholarship for the entire period of my study.
I am also thankful to my colleagues and classmates at PMBF, AIT, especially to Mr.
Obaydullah Al Masud and Mr. Golam Rabby Masud, for their support, interest and valuable comments.

ii

ABSTRACT
The balance of trade or net exports is rather an interesting issue because of its perplexing relationship and impacts on economies. Bangladesh is a rapidly growing market-based economy in the South Asian region. It has a long history of sustaining a negative trade balance, importing more goods than it exports. In spite of the robust average annual GDP growth of over 5% achieved after 90’s, the overall trade deficit is getting bigger both in nominal terms and as a % share of GDP. On June 2014 the country had a trade deficit of
USD 10,830.29 million which is equal to 7.22% of its GDP and seven and half fold increase from that in 1986. This poses to be a matter of great concern

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