Terms of Trade and Its Implications: Bangladesh Perspective

This work explores the key reasons behind the movements in the terms of trade and the real net gain and loss from trade in the long run. Like some selected Asian countries (Vietnam, China and South Korea) except India, the terms of trade of Bangladesh has been falling almost continuously. Bangladesh’s trade performance has improved and gained momentum despite the terms of trade deterioration. Bangladesh is also experiencing a net welfare gain from trade due to with increasing market share in terms of export volume and gains in productivity, especially in the dominant garment sector.