Impact of Trade Liberalisation on Employment in Bangladesh: A Computable General Equilibrium (CGE) Analysis

Hoque, Serajul (2005): Impact of Trade Liberalisation on Employment in Bangladesh: A Computable General Equilibrium (CGE) Analysis.

Abstract

We use a 86-industry CGE model of Bangladesh to simulate the employment effects of removing all tariffs in Bangladesh. We find that this would expand GDP and generate employment. The industries that experience the greatest positive effects on their output and employment are the export-oriented industries. There are also positive effects on the suppliers to these industries. Lightly-protected industries that rely heavily on imported intermediate inputs exhibit robust expansion as they benefit from a cost reduction. In contrast, highly-protected industries demonstrate contraction. The occupational pattern of the employment results indicates that expansion is felt most heavily in the export sector (export-related occupation experiences the largest increase).

• Item Type: MPRA Paper
• Language: English
• Keywords: Trade Liberalisation; Employment; CGE model; Bangladesh
• Subjects: C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C68 - Computable General Equilibrium Models

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