Bangladesh’s trade in climate smart goods: An analysis of trends trading patterns and determinants
Paper Details
Bangladesh’s trade in climate smart goods: An analysis of trends trading patterns and determinants
Abstract
Trade and environment are complex issues. In one hand, trade contributes to promote economic growth and development, but at the same time it is also responsible to generate greenhouse gases. On the other hand, by exporting and importing CSGs, trade contributes to abate greenhouse gas emissions. To ensure sustainable development, it is essential to expand the market for CSGs. It could also be beneficial for Bangladesh to promote trade in CSGs through policy incentives, but not at the cost of other established export sectors. This study has been conducted with the main objective of analyzing the trend and trading patterns of CSGs of Bangladesh with the rest of the world and also estimating major determining factors that influence trade in CSGs by Bangladesh. Based on the collected data covering the period of 1989 to 2007, the analyses indicate that total trade in CSGs has been found increasing but the percentage share by trade in CSGs was still negligible compared to the total trade by the country services. Bangladesh’s export and import of CSGs are dominated by few products and destinations are mostly concentrated on countries like the USA, the UK, Japan, France Monaco, Italy, Hong Kong, Singapore, Indonesia, India, Netherlands and China. In case of determinants of trade in CSGs by Bangladesh, which have been estimated using three different econometric models the findings suggest that for both export as well as import of climate smart goods are significantly influenced by GDP percapita, Exchange rate, GDP deflator, Tariff rate, and Population growth rate in the long run. On the other hand, tariff and exchange rate are found to have no significant impact on export of CSGs.
Ahasan. M. Rajibul & Son Ngoc Chu. 2014. The potential and constraints of the exports of environmental goods (EGs): the case of Bangladesh. ASARC working paper 2014\05, Crawford school of public policy, The Australian National University.
Antweiler W, Copeland B, Taylor MS. 1998. “Is free trade good for the environment. American Economic Review 91(4), P. 877-908.
Bora, Bajit & Robert, The. 2004. Tariffs and trade in environmental goods. WTO secretariat, Geneva.
Chowdhury T, Islam N. 2014. India’s trade in climate smart goods: an analysis of the trends and trading patterns. Development Studies and Research 4(3), P. 36-52.
Crowford J. 2011. Promoting trade and investment in climate smart goods, services and technologies in Asia and the Pacific. United Nations 2011. Retrieved from www.unescap.org\sites\defaults\files\4.
Dasgupta S, Huq M, Wheeler D. 1998. “Bending the rules: discretionary pollution control in China”, Manuscript.
Dean, Judith M, 1999. Does trade liberalization harm the environment. A New Test. SAIS, Johns Hopkins University. Washingtom. D.C.
Duy, Loi N. 2010. The impact of trade liberalization on the environment in some East Asian countries: an empirical study. CARE 2260 EMR, Faculy of Laws, Economics and Management, University of Rouen.
Jha, Veena. 2008. Environmental priorities and trade policy for environmental goods: A reality check. ICTSD Issue Paper No. 7. Geneva: International Centre for Trade and Sustainable Development.
Johansen, Søren 1992. Determination of cointegration rank in the presence of a linear trend. Oxford Bulletin of Economics and Statistics 54(3), pp. 383-97.
Khatun F. 2012. Trade in environmental goods by least developed countries: issues for negotiations. South Asia Economic Journal, Vol. 13, no. 2, pp. 157-182.
Kuriyama C. 2012. A snapshot of current trade trends in potential environmental goods and services. APEC Policy Support Unit, Policy Brief No. 3.
Lai H, Trefler D. 2002. The gain from trade with monopolistic competition: specification, estimation, and misspecification. NBER. Working paper 9169. September 2002.
Mathur SK. 2011. Trade analysis of CSG sub-categories for regional groups and some selected member’s states of ESCAP in 2002-2008. Ovidus University Annals, Economic science series, 2011, vol. X1, issue 1, page 1264-1279.
Mathur SK. 2011. Trade performance of Asia- Pacific economics in trade of climate smart goods and technologies. TID Working paper (forth coming). Bangkok: ESCAP.
McCallum J. 1995. National borders matter: Canada–U.S. regional trade patterns. American Economic Review 85(3), 615-23.
Rahman M, Mazbahul Golam Ahamad AKM, Nazrul Islam & Mohammad Al Amin. 2012. Agricultural trade between Bangladesh and India: an analysis of trends, trading patterns and determinants. CPD-CMI working Paper Series 3.
Rahman, Mahfizur M. 2003. A panel data analysis of Bangladesh’s trade: the gravity model approach. Discipline of Economics. University of Sydney, NSW 2006, Australia.
UNCTAD. 2003. Trade and Environment review. United Nations, New York and Geneva.
UNCTAD. 2013. Environmental goods and services in trade and sustainable development. TD/B/COM.1/EM.21/2. United Nation, New York and Geneva 2013.
UNESCAP. 2011. Climate smart trade and investment in Asia and the Pacific: Towards a triple-win outcome. United Nations Publication, New York.
Viljeon, Willemien. 2012. Trade in environmental goods in Southern and Eastern Africa. Tralac, Trade Low Centre.
Zhang ZX. 2011. Trade in environmental goods, with focus on climate- friendly goods and technologies. East- West Centre Working Papers, Economic Series No. 120.
Tonmoy Chowdhury, A. K. M. Nazrul Islam, 2018. Bangladesh’s trade in climate smart goods: An analysis of trends trading patterns and determinants. Int. J. Biosci., 12(6), 476-487.
Copyright © 2018 by the Authors. This article is an open access article and distributed under the terms and conditions of the Creative Commons Attribution 4.0 (CC BY 4.0) license.