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Bangladesh’s trade in climate smart goods: An analysis of trends trading patterns and determinants

Research Paper | June 1, 2018

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Tonmoy Chowdhury, A. K. M. Nazrul Islam

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Int. J. Biosci.12( 6), 476-487, June 2018

DOI: http://dx.doi.org/10.12692/ijb/12.6.476-487


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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.


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Bangladesh’s trade in climate smart goods: An analysis of trends trading patterns and determinants

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