Bangladesh and SAARC Countries: Bilateral Trade and Flaring of Economic Cooperation

Abstract

The primary purpose of this study is to observe the economic and international trade relationships between Bangladesh and SAARC countries during the Fiscal Years 2015-2016 to 2020-2021. This research uses panel data to examine the relationship between the nature and direction of exports and economic growth. The researcher found that economic cooperation with SAARC countries impacted economic growth, but there was insufficient export adaptation. The study also showed that economic relations have strengthened in recent epochs, and bilateral trade has increased compared to previous years with SAARC countries. The obtained results also showed that Bangladesh has suffered from a long-standing trade imbalance with India and is in a good position with Afghanistan, Sri Lanka, Bhutan, Maldives, Nepal, and Pakistan. Our findings are beneficial for international trade stakeholders and suggest that steps should be taken to increase exports to reduce the trade deficit. Concern authorities should be more aware of the expansion of trade facilitation and infrastructure development.