... 2, No.4, August 2013 FACTORS AFFECTING THE EXPORT PERFORMANCE OF TEXTILE INDUSTRY IN DEVELOPING COUNTRIES – A REVIEW OF LITERATURE Yoganandan.G & Jaganathan A.T Assistant Professor(s) in Management Studies K.S.R College of Arts and Science Tiruchengode, India Saravanan. R Director and Head, Department of Management Studies Sri Krishna College of Technology Coimbatore, India. SenthilKumar .V M.Phil Scholar in Management Studies K.S.R College of Arts and Science Tiruchengode, India. Abstract The present study aims at reviewing researches conducted in the area of determinants of and factors affecting the export performance of textile industry. The tools used by the various researchers and their findings are studied in order to establish the academic contributions made by these studies to the existing body of knowledge, new models developed and also to highlight method adopted or suggested by researchers for conducting researches in the area of export performance of manufacturing industries with special focus on textile sector in developing countries. The article analyzed researches carried out in China, India, Sri Lank, Bangladesh and Pakistan. These economies are the dominant textile exporters in the international trade. The review highlights that most of the studies have been carried out on establishing the relationship between GDP, exchange rate, labor, capital (FDI) and technology with export performance of textile industry. Most of the researchers found a positive...
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...EVOLUTION OF EXCHANGE RATE REGIME: IMPACT ON MACRO ECONOMY OF BANGLADESH by Liza Fahmida A project submitted in partial fulfillment of the requirements for the degree of Professional Master in Banking and Finance Examination Committee: Dr. Sundar Venkatesh (Chairperson) Dr. Juthathip Jongwanich Dr. Yuosre Badir Nationality: Bangladeshi Previous Degree: Master in Finance and Banking University of Dhaka Bangladesh Scholarship Donor: Bangladesh Bank Asian Institute of Technology School of Management Thailand May 2012 i ACKNOWLEDGEMENT The dissertation paper entitled “Evolution Of Exchange Rate Regime: Impact On Macro Economy Of Bangladesh” has been prepared for the partial fulfillment of Professional master in Banking and Finance (PMBF) program conducted by School of Management, AIT, Thailand. I would like to offer my wholehearted gratitude and respect to a good number of people who offered encouragement, data and information, inspiration and assistance during the course of constructing this dissertation paper. It would be difficult to prepare the paper and to present it in a lucid manner within stipulated time without the help of my guide teacher Dr. Sundar Venkatesh, Adjunct Faculty, School of Management, Asian Institute of Technology, Thailand. His utmost care, constant support and meticulous supervision guided me through the process. I am indebted to Begum Sultana Razia, General Manager, Monetary Policy Department, Bangladesh Bank, whose sincere co-operation...
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...Development of Non Bank Financial Institutions to Strengthen the Financial System of Bangladesh - MONZUR HOSSAIN∗ -MD. SHAHIDUZZAMAN∗ Abstract Non-bank financial institutions (NBFIs) represent one of the most important parts of a financial system. In Bangladesh, NBFIs are new in the financial system as compared to banking financial institutions (BFIs). Starting from the IPDC in 1981, a total of 25 NBFIs are now working in the country. As on June 30, 2001 the total amount of paid up capital and reserve of 24 NBFIs stood Tk.6901.8 million (BB, 2002). The NBFIs sector in Bangladesh consisting primarily of the development financial institutions, leasing enterprises, investment companies, merchant bankers etc. The financing modes of the NBFIs are long term in nature. Traditionally our banking financial institutions are involved in term lending activities, which are mostly unfamiliar products for them. Inefficiency of BFIs in long-term loan management has already leaded an enormous volume of outstanding loan in our country. At this backdrop, in order to ensure flow of term loans and to meet the credit gap, NBFIs have immense importance in the economy. In addition, non-bank financial sector is important to increase the mobilization of term savings and for the sake of providing support services to the capital market. The focus of this paper is to highlight the necessity and importance of NBFIs to strengthen the financial system for rapid economic development of the country. 1. Introduction...
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...Executive Summary Over the last few years, the capital market of Bangladesh has witnessed a haughty growth which is not in line of development in the real sector of the economy. Although, the Securities and Exchange Commission (SEC) of Bangladesh has tried to correct the irregular behavior observed in the market, very often it is argued that lack of proper and firm decisions from the regulator’s side has contributed to make the market more unstable rather than to reduce it. The paper attempts to identify the inter relationship between the capital market and money market. The Capital Market of Bangladesh is passing tough times since December 2010 as high volatility is eroding the capital of Thousands of Investors that might turn into social instability. This fall is caused by many factors that I tried to identify and tried to link up between causal factors of market crash and regulatory failure and also tried to find out the inter-relationship between capital market and money market. Primary issue related problems was faulty listing methods and IPO overpricing, few numbers of new listings, revaluating assets before company listing, high premium in issuance of right share/Repeat IPO etc. while secondary market related problems was stock splits and stock price manipulations through block trading, circular trading and insider trading. Investor’s greed and irrational behavior played a big rule to make the stock prices sky rocking as they were crazy to buy shares without judging...
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...brings challenges for Bangladesh and private sector of Bangladesh. By facing these challenges if private sector of this country could success then the country will receive opportunities of globalization. I would like to thank my course teacher Dr. Salehuddin Ahmed (Economic Condition Analysis) for giving us this opportunity for assigning us with this paper. It helps me a lot to know about the challenges and opportunities that Bangladesh and private sector of this country faced and received from globalization while I am making this portfolio. This portfolio helps me a lot to know each and every area where globalization brings opportunities for our private sector and those areas that facing challenges. And this paper will also demonstrate that the main driver of progress has been Bangladesh private sector. Then we like to thank those people who really helped us by providing valuable information during prepare the paper. Read more: http://essaybank.degree-essays.com/business/globalization-for-bangladesh.php#ixzz2EWf1f3By ABSTRACT This paper examines the role of private sector in Bangladesh in the context of Globalization since the change of the first government of the independent of Bangladesh. Actually Bangladesh has undertaken a wide range of reforms to open the economy in the areas of trade, finance and investment. The globalization efforts in these areas have produced some positive results. But in the overall assessment Bangladesh seems to have opened...
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...Trends of Foreign Direct Investment in Bangladesh CHAPTER ONE Background of the Study 1. Introduction 1.1 Introduction Foreign Direct Investment (FDI) is considered as one of the vital ingredients for overall development process of a developing Bangladesh. country like Industrial development is an important pre-requisite growth country. of for a economic developing is Bangladesh basically a country of agrarian economy. For her economic development, industrial economy is imperative. So Bangladesh is gradually moving from agrarian economy to industrial economy. In the age of globalization, it has become a burning issue to exchange views, ideas, capital and human resources. Government of Bangladesh is trying to create a favorable investment environment through introducing economic policies, incentives for investors, promoting privatization and so on. Therefore, the contribution of FDI is necessary in the enhancement of a country‟s economic growth. Researchers have marked FDI as an important factor in accelerating economic success and wealth of a country as well as a door in creating jobs, facilitating economy, and creating more competitive environment and contributing productivity to the host country. 1 Trends of Foreign Direct Investment in Bangladesh In Bangladesh, FDI plays a significant role in GDP acceleration and economic growth (Mottaleb 2007). FDI has a mentionable role in the modernization of the Bangladesh economy for last two decades. It helps the country...
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...together of different societies and economies via cross border flow of ideas, finances, capital, information, technologies, goods and services. The cross border assimilation can be social, economic, cultural, or political. But most of the people fear cultural and social assimilation as they believe this would have a negative impact on the existing culture of their society. Globalization therefore has mostly narrowed down to economic integration and this mainly happens through three channels; flow of finance, trade of goods and services and capital movement. Globalization is a term that includes a wide range of social and economic variations. It encompasses topics like the cultural changes, economics, finance trends, and global market expansion. There are positive and negative effects of globalization - it all comes as a package. Globalization helps in creating new markets and wealth, at the same time it is responsible for extensive suffering, disorder, and unrest. The great financial crisis that just happened is the biggest example of how negative globalization can turn. It clearly reveals the dangers of an unstable, deregulated, global economy. At the same time, this gave rise to important global initiatives, striving towards betterment. Globalization is a factor responsible for both repression and the social boom. What happens when there is a growing integration of economies across the globe? Majorly there have been positive impacts of this global phenomenon - through liberalization...
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...GLOBALIZATION AND ITS IMPACT ON BANGLADESH ECONOMY “Globalization was supposed to bring unprecedented benefits to all. Yet, curiously, it has come to vilified both in the developed and developing world”—Joseph E Stiglitz, Making Globalization Work, 2006. - PROF. DR. M A JALIL State University of Bangladesh ABSTRACT Today all the modern and developed and developing countries are more or less within the fold of globalization. Bangladesh with its expanding sway of exports and imports is no exception to that. Globalization is increasingly becoming more and more popular, because most of the countries see their better fortune in this arrangement. Globalization covers a wide range of issues, economic, political, cultural, etc. There are scopes of win-win gains of the involved countries in their dealings. Since the issue of globalization is more a dream than reality, an effort was made to make the readers more aware about the issue, so that they take more interest in implementing the nobler ideas of globalization. Bangladesh has been trying to bring structural changes in her economy- increasingly expanding the contributions of industries in GDP, trade liberalization, boosting up exports, exporting more manpower in abroad, encouraging them in sending remittances, and alluring the investors (both foreign and non-residents of Bangladesh) for DFI. The country found the results encouraging and more efforts will be rewarding. Recently, Bangladesh has taken efforts to diversify...
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...payments for the country's exports and imports of goods, services, financial capital, and financial transfers. The current account represents a summary of the flow of funds between one specified country and all other countries due to a purchase of goods and services, or the provision of income from financial assets. The capital account represents a summary of the flow of funds resulting from the sales of assets between one specified country and all other countries over a specified period of time. Thus, it compares the new foreign investment made by a country with the foreign investments within a country over a particular time period. Transactions that reflect inflows of funds generate positive numbers for the country’s balance, while transactions that reflect outflows of funds generate negative numbers for the country. Current Account: The current account is one of the two primary components of the balance of payments, the other being capital account. It is the sum of the balance of trade (net revenue on exports minus payments for imports), factor income (earnings on foreign investments minus payments made to foreign investors) and cash transfers. Calculating Current Account: (Export – Import) + Net Income (abroad) + Net Current Transfer Current Account Overview of Bangladesh: From the chart below we can observe the last five year current account condition year 2007 – 2011, the chart states that Bangladesh had a surplus condition all...
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...IMPACT OF SOLAR PANEL IN LIVELIHOOD IN SOME SELECTED (MD. IBRAHIM KHOLILULLAH, DEPT OF AG.FINANCE, BAU MOB: 01718996557) AREAS OF BOGRA DISTRICT Introduction Solar panel refers to a panel designed to absorb the sun's rays as a source of energy for generating electricity. Electricity is the prime mover for the advancement of all economic and industrial activities. About 59% of total population live in rural and isolated areas and most of them have no electricity access. This scenario is more acute in the rural and isolated areas in Bangladesh where only about 25% have electricity access ( Energy Bangla, January, 2014 ). Bangladesh is a semi-tropical region lying in northeastern part of South Asia gets abundant sunlight year round. The average bright sunshine duration in Bangladesh in the dry season is about 7.6 hours a day, and in the monsoon season is about 4.7 hours, Solar energy can be harnessed. So, solar panel technology is advised. A total of 3,00,000 solar panels had been installed in more than 40,000 villages of 456 upazilas of all districts of Bangladesh. Daily on average 44 MW electricity is being produced by these solar panels.( Momotaz and Karim,2012).Now a days solar panel is applied in different aspects such as solar based recharging station ,solar cooking etc. It presents an attractive alternative to conventional electricity such as no monthly bills, no fuel cost, little repair and maintenance costs, easy to install any where etc. The solar panel technology is very...
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...Outline of Internship Report Topic: Impact of Financial Institutions in Capital Market : Bangladesh Scenario A) Introductory Part * Letter of Transmittal * Table of Contents * Acknowledgement * Executive Summery * Background of the report * Objective of the report * Source of information * Methods and Procedures used * Decisions support system B) Descriptive part * Significance of the report * Overall scenario of NBFI in BD * Sector Description * SWOT Analysis * Market operations * Financial performance * Capital Market Involvement(Main Focus) * Growth and prospects * Overall scenario of Capital Market in BD C) Analytical part * Prospective Analysis- * Time series * Trend * Chart and table * Regression Analysis-profitability & amount of investment * Scenario Analysis * Sensitivity Analysis D) Conclusion Part * Analytical outcome * Recommendations/Suggestions * Bibliography * References * Appendices * Involvement of Financial Institutions in Capital Market: Bangladesh Scenario * Prospects of Financial Institutions in Capital Market: A study of regulatory framework, growth and performance Non-bank financial institutions (NBFIs) represent one of the most...
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...structure of the external sector of Bangladesh and its impact on GDP. It involves economic models developed to determine the impact of each sector-Export, Import, Foreign Aid and Remittance, on GDP of Bangladesh. It also involves an analysis of the behavior of these factors in three SAARC countries and the application of the regression model developed. The economic model was developed based on the past behavior of GDP and the external sector. It indicated that Remittance is the sector having the most significant impact on GDP and aid the second most significant. While imports negatively affect economic growth, exports have played a very important role over the period. The remittance of Bangladesh has been increasing over the last few years. Hence, its impact on GDP has also been rising. In the span of 34 years export as percentage of GDP increased from 2.2% to 15.4%. Hence, performance was moderately good. The economy has been suffering from ever increasing trade deficits, despite several export promotional measures. Large import payments mainly account for this problem. Foreign aid shows large fluctuations over the period Finally, an analysis was conducted on the behavior of the external sectors in the SAARC countries using the regression model. Export was found to be the dominant sector in India, while imports had the minimum impact on GDP. Pakistan was found to be more dependent on export and foreign aid than on remittance and import. Sri Lanka’s economy is highly correlated to remittance...
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...The Global Financial Crisis: Impact on Bangladesh A.K.M. Atiqur Rahman Professor Department of Economics North South University Overview I. Introduction: Genesis and Spread of the Crisis. II. Global Recession and LDCs III. Impact on Bangladesh IV. Recession and Export from Bangladesh V. Exchange Rate Movement VI. Remittance VII. Import and Tax Revenue VIII. Overall Impact IX. Policy Implications I. Introduction: Genesis and Spread of the Crisis. • Root: Mispricing in the Massive Credit Default Swap Market • Sub prime Mortgage: Bank transferred credit risk to third party through the process of securitization ( MDS, CDO) • Reckless growth of sub prime mortgage-lower yield in risky mortgage • Arbitrage drove the yields on all bonds & loans down • Expansion of consumer credit, housing price bubble Intriduction continued • Unsustainability of Credit default swap and subprime mortgages exposed • Housing bubble burst → mortgage default → foreclosures→ bank and insurance failure→ credit freeze • Spillover of financial crisis to real economy through virulent credit crunch →depressed aggregate demand • Sub prime mortgage default led to spillover effects around the world (Europe and emerging economies) via an elaborate network of derivatives Continued . Global consequence of the crisis includes: • Sharp rise in Unemployment in the US, Job loss in few other countries • Sharp fall in the stock market price around the globe, current...
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...Bangladesh Economic Update Bangladesh Economic Update Capital Market Capital Market October 2011 October 2011 Bangladesh Economic Update Volume 2, No. 9, October 2011 Acknowledgement: Bangladesh Economic Update is an output of the Economic Policy Unit of the Unnayan Onneshan, a multidisciplinary research centre based in Dhaka, Bangladesh. The report is prepared by a team, under the guidance of Rashed Al Mahmud Titumir. The team comprises Md. Aslam Hossain and A. Z. M. Saleh. The report is an output of the programme titled Enhancing the responsiveness of the government to address exclusion and inequality. The programme has been supported from a grant of Christian Aid. © Copyright: Unnayan Onneshan-The Innovators The content of this publication may be reproduced for non-commercial purposes with proper citation (please send output to the address mentioned below). Any other form of reproduction, storage in a retrieval system or transmission by any means for commercial purposes, requires permission from the Unnayan Onneshan-The Innovators. For orders and request please contact: Unnayan Onneshan - The Innovators 16/2, Indira Road, Farmgate Dhaka-1215, Bangladesh Tell: + (880-2) 8158274, 9110636 Fax: + (880-2) 8159135 E-mail: info@unnayan.org Web: www.unnayan.org Bangladesh Economic Update, October 2011 2|P a g e SUMMARY This issue of Bangladesh Economic Update discusses the continuous fall in the capital market of Bangladesh. Continuous decrease in the capital market...
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...CONTEXT 1.0 Introduction Capital Market mainly refers to the Stock and Share market of the country. When banking system cannot totally meet up the need for funds to the market economy, capital market stands up to supplement it. Companies and the government can raise funds for long-term investments via the capital market. The capital market includes the stock market, the bond market, and the primary market. Securities trading on organized capital markets are monitored by the government; new issues are approved by authorities of financial supervision and monitored by participating banks. Thus, organized capital markets are able to guarantee sound investment opportunities. This paper reveals the various aspects of the Capital Market in Bangladesh. 1.1 Objectives Capital market, being an essential element of today’s economy, demands an intensive and special attention. The objective of this study is to look into every aspect of Bangladesh capital market and identify its various pros and cons along with some recommendations to overcome the existing problems. The specific objectives of this study are: To give an overall idea about the capital market-its structures, functions, importance, etc. To identify the current situations of our capital market of Bangladesh. To compare the relative conditions of Bangladesh capital market to other countries of the world. To sort out the problems associated with our capital market. To suggest some practicable solutions to these problems...
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