JBS Vol 25. Num 2. 2023. Article 5 - Bangladesh’s Export Diversification - A Survey

Bangladesh faces a significant challenge with limited export diversification, as ready-made garments constitute approximately 85% of its exports. This paper presents a review of academic literature to understand the underlying reasons for this heavy reliance on a narrow range of export products and the obstacles in diversifying export earnings. It explores the relationship between economic development and export diversification, highlighting the role of economic complexity, human capital, and policy decisions in shaping Bangladesh’s export patterns. The findings suggest that export diversification in Bangladesh is hindered by a focus on intensive margins, low economic complexity, and an export model that does not encourage industrial upgrading. The paper concludes by emphasizing the importance of primary education in promoting export diversification and the need for an industrial structure that fosters skill development and economic complexity enhancement.