Measuring External Sector Openness and Integration Status Of Bangladesh Economy

Abstract

There have been notable changes in external trade and financial controls in the developing countries since mid 1980s. Many developing economies have experienced tremendous increase in the volume of global international trade and international financial transactions after mid 1990s in response to the removal of external sector restrictions and other policy reforms undertaken in the developing countries. In line with global development strategy, a substantial openness measures have been undertaken in external sector of Bangladesh since early 1990s with the objectives of achieving positive benefits from global financial integration. The paper is an attempt to find the external sector openness and integration status of Bangladesh relative to a set of developing economies. It is evident that Bangladesh has become more open over the period; nonetheless it has remained less open among the sample economies. And though the volume of foreign capital flows has increased in Bangladesh, it has remained the least integrated economy of all the selected economies of Southeast Asia, and South Asia.