About the project

Partner: International Growth Centre (IGC).

Under this project a paper will be prepared that will explore the potential consequences of Bangladesh graduating from the Least Developed Country (LDC) status, specifically focusing on the impact on its main export, Ready Made Garment (RMG) products, in the European Union (EU) and the UK markets. As a current LDC member, Bangladesh benefits from preferential treatment, but this is expected to change post-graduation, leading to increased prices for its RMG products and potentially reducing competitiveness. The study aims to estimate import demand elasticities in these markets for Bangladesh and 11 other countries, assessing the vulnerability of Bangladesh's RMG exports. The research also intends to calculate markups as indicators of the industry's ability to absorb potential price shocks. By employing advanced modeling techniques, the study aims to provide evidence-based recommendations for policymakers to address challenges and ensure the sustainability and growth of Bangladesh's RMG industry in evolving trade conditions.

Project activities

Dissemination Seminar: Can Bangladesh Absorb LDC Graduation-induced Tariff Hikes? Evidence Using Product-specific Price Elasticities of Demand and Markups for Apparel Exports to Europe

On 12 November 2023, Research and Policy Integration for Development (RAPID), and International Growth Centre (IGC), jointly organised a dissemination seminar. At the event, Mr. Tapan Kanti Ghosh, Senior Secretary, Ministry of Commerce, Government of the People's Republic of Bangladesh, was present as Chief Guest while Ms Sharifa Khan, Senior Secretary, Economic Relations Division, Ministry of Finance, Government of the People’s Republic of Bangladesh, was present as Guest of Honour.
RAPID Chairman Dr M A Razzaque delivered the keynote presentation on “Can Bangladesh Absorb LDC Graduation-induced Tariff Hikes? Evidence Using Product-specific Price Elasticities of Demand and Markups for Apparel Exports to Europe”. Dr M Abu Eusuf, Executive Director, RAPID, delivered his welcome remarks in the event.

Policy brief here.

Media coverage
The Daily Star
The Financial Express
The Business Standard