Contribution of Export, Import an Remittances on Bangladesh Economy: Role of Bangladesh Bank
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A developing country like Bangladesh is heavily dependent on the remittance as its many people are working abroad who contributes in bringing inward remittances that increase the country’s GDP, BOP, Foreign Exchange Reserve etc. In the same way export and import is the major sector of any economy where the net export is good for the country but if the imported products are in case of plant and machinery then it contributes in the positive ways. Bangladesh is facing the negative net export for the long time where its major exported sector is the Garment sectors. This Garment sector is contributing al almost half of the total GDP of the country. However, the recent problems relate to this sector has pushed it to severe problems where we have lost the GSP facilities from EU and USA. On the other hand, the FDI of our country is a great sector where the FDI has contributed a lot. FDI has a strong positive relationship with the country’s GDP, Foreign Exchange Reserve, Balance of Payments etc. All of these sectors are heavily influenced by the FDI. FDI increase the level of the total production creating more investment opportunities within the country that has contributed positively on the whole economy. The proper management of FDI is not being done by the government as many foreign firms face difficulties and other bureaucracy problems while coming to do business within the country. So, there is a strong effect of Net Export, Remittance and FDI on the overall economy. Especially the BOP and foreign exchange reserve is dependent on the remittance and FDI. If all the remittances are properly managed then the country’s economy could have been boosted up enough. The major problems related to the remittance are the unskilled human resource. If the all human capital were skilled enough then the country’s Remittance could have been doubled. However, like the Remittance the garment sector is also left without proper care and security for the workers that have a negative effect on the whole economy. As a developing country, the country is leg behind from many industrial sector and technologies but only these two sectors Remittance and Garment sectors are the major contributing sector. Like these FDI should be properly managed as it also has a great effect on the economy especially on the Balance of payment, foreign exchange reserve and GDP.
- Journal of law