Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The pattern of international trade between Bangladesh and USA: Heckscher–Ohlin and Rybczynski analysis

The pattern of international trade between Bangladesh and USA: Heckscher–Ohlin and Rybczynski... Research based on Bangladesh–US trade data examines the Heckscher–Ohlin model and the Rybczynski hypothesis in this study.Design/methodology/approachOrdinary least square (OLS) techniques are used in this study, which relies on data from the NBER International Trade and Geography Data and the UN Comtrade Database for the years 2018 and 2008.FindingsThe research shows that trade between the United States and Bangladesh follows Heckscher–Ohlin and Rybcyzinski's trade predictions. According to the study, since labor is in plentiful supply in Bangladesh, Bangladesh's labor-based sectors have a higher US labor-to-capital import shares than US capital-based industries. As Bangladesh has not changed significantly from a labor-based country since 2008, it retains the same pattern even though the share of US unskilled labor-based sectors imported from Bangladesh decreased in 2018.Originality/valueThe findings of this study have a wide range of implications for both trade theory and policy debates between Bangladesh and the United States. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Modern Supply Chain Research and Applications Emerald Publishing

The pattern of international trade between Bangladesh and USA: Heckscher–Ohlin and Rybczynski analysis

Download PDF

The pattern of international trade between Bangladesh and USA: Heckscher–Ohlin and Rybczynski analysis

Akther, Tanjina; Voumik, Liton Chandra; Rahman, Md. Hasanur
Modern Supply Chain Research and Applications , Volume 4 (3): 15 – Nov 4, 2022

Abstract

Research based on Bangladesh–US trade data examines the Heckscher–Ohlin model and the Rybczynski hypothesis in this study.Design/methodology/approachOrdinary least square (OLS) techniques are used in this study, which relies on data from the NBER International Trade and Geography Data and the UN Comtrade Database for the years 2018 and 2008.FindingsThe research shows that trade between the United States and Bangladesh follows Heckscher–Ohlin and Rybcyzinski's trade predictions. According to the study, since labor is in plentiful supply in Bangladesh, Bangladesh's labor-based sectors have a higher US labor-to-capital import shares than US capital-based industries. As Bangladesh has not changed significantly from a labor-based country since 2008, it retains the same pattern even though the share of US unskilled labor-based sectors imported from Bangladesh decreased in 2018.Originality/valueThe findings of this study have a wide range of implications for both trade theory and policy debates between Bangladesh and the United States.

Loading next page...
 
/lp/emerald-publishing/the-pattern-of-international-trade-between-bangladesh-and-usa-kIc9thncAZ
Publisher
Emerald Publishing
Copyright
© Tanjina Akther, Liton Chandra Voumik and Md. Hasanur Rahman
ISSN
2631-3871
DOI
10.1108/mscra-03-2022-0011
Publisher site
See Article on Publisher Site

Abstract

Research based on Bangladesh–US trade data examines the Heckscher–Ohlin model and the Rybczynski hypothesis in this study.Design/methodology/approachOrdinary least square (OLS) techniques are used in this study, which relies on data from the NBER International Trade and Geography Data and the UN Comtrade Database for the years 2018 and 2008.FindingsThe research shows that trade between the United States and Bangladesh follows Heckscher–Ohlin and Rybcyzinski's trade predictions. According to the study, since labor is in plentiful supply in Bangladesh, Bangladesh's labor-based sectors have a higher US labor-to-capital import shares than US capital-based industries. As Bangladesh has not changed significantly from a labor-based country since 2008, it retains the same pattern even though the share of US unskilled labor-based sectors imported from Bangladesh decreased in 2018.Originality/valueThe findings of this study have a wide range of implications for both trade theory and policy debates between Bangladesh and the United States.

Journal

Modern Supply Chain Research and Applications – Emerald Publishing

Published: Nov 4, 2022

Keywords: International trade; Heckscher–Ohlin model; Rybczynski model; Romali's prediction

References

  • Trade, growth, and convergence in a dynamic Heckscher–Ohlin model
    Bajona, C.; Kehoe, T.J.
  • Statistical yearbook
  • Ministry of finance, government of the Peoples Republic of Bangladesh
  • Exploring the relationship between reverse logistics and sustainability performance: a literature review
    Banihashemi, T.A.; Fei, J.; Chen, P.S.L.
  • International data on educational attainment: updates and implications
    Barro, R.J.; Lee, J.W.
  • The Heckscher–Ohlin model and the network structure of international trade
    Baskaran, T.; Blöchl, F.; Brück, T.; Theis, F.J.
  • The future of international trade governance in a protectionist world: theorizing WTO negotiating perspectives
    Chaisse, J.; Chakraborty, D.
  • Maintaining the WTO's supremacy in the international trade order: a proposal to refine and revise the role of the trade policy review mechanism
    Chaisse, J.; Matsushita, M.
  • Long-run equilibria in a dynamic Heckscher-Ohlin model
    Chen, Z.
  • The extended heckscher-ohlin model: patterns of trade between the US and China
    Clements, M.
  • Perspectives of consultants on health and safety provisions in the labour act: a study into theory and practicals
    Dadzie, J.
  • Intra-industry trade: a Heckscher-Ohlin-Ricardo approach
    Davis, D.R.
  • Nontraded goods and the Heckscher-Ohlin model
    Ethier, W.
  • The Rybczynski theorem in a model with non-traded goods and indecomposable inter-industry flows
    Flam, H.
  • Identifying and prioritizing safety practices affecting construction labour productivity: an empirical study
    Gurmu, A.T.
  • Why do some countries produce so much more output per worker than others?
    Hall, R.E.; Jones, C.I.
  • The Rybczynski theorem, factor-price equalization, and immigration: evidence from US states
    Hanson, G.H.; Slaughter, M.J.
  • Corporate social responsibility, economic globalization and developing countries: a case study of the readymade garments industry in Bangladesh
    Haque, M.Z.; Azmat, F.
  • The effect of foreign trade on the distribution of income
    Heckscher, E.F.
  • Inward foreign direct investment in Bangladesh: do we need to rethink about some of the macro-level quantitative determinants?
    Hossain, M.R.
  • A generalization of the Samuelson reciprocity relation, the Stolper-Samuelson theorem and the Rybczynski theorem under variable returns to scale
    Inoue, T.
  • Factor proportions and the Heckscher-Ohlin theorem
    Jones, R.W.
  • The gain from international trade and investment: a neo-Heckscher-Ohlin approach
    Kemp, M.C.
  • Is ols dead?
    Krueger, J.S.; Lewis-Beck, M.S.
  • Scale economies, product differentiation, and the pattern of trade
    Krugman, P.
  • The role of free entry in an oligopolistic Heckscher-Ohlin model
    Lahiri, S.; Ono, Y.
  • The Heckscher-Ohlin model in theory and practice
    Leamer, E.E.
  • Domestic production and foreign trade; the American capital position re-examined
    Leontief, W.
  • Finance, trade, man and machines: a new-ricardian heckscher-ohlin-samuelson model
    Marjit, S.; Das, G.
  • The Heckscher-Ohlin model between 1400 and 2000: when it explained factor price convergence, when it did not, and why
    O'Rourke, K.H.; Williamson, J.G.
  • Export logistics infrastructure and export competitiveness in the East African Community
    Olyanga, A.M.; Shinyekwa, I.M.; Ngoma, M.; Nkote, I.N.; Esemu, T.; Kamya, M.
  • The impact of Kaizen: assessing the intensive Kaizen training of auto-parts suppliers in South Africa
    Otsuka, K.; Ben-Mazwi, N.
  • The impact of active labour market policies on health outcomes: a scoping review
    Puig-Barrachina, V.; Giró, P.; Artazcoz, L.; Bartoll, X.; Cortés-Franch, I.; Fernández, A.; González-Marín, P.; Borrell, C.
  • Factor proportions and the structure of commodity trade
    Romalis, J.
  • Factor endowment and relative commodity prices
    Rybczynski, T.M.
  • One size fits all? Heckscher-Ohlin specialization in global production
    Schott, P.K.
  • Globalisation and employment in Bangladesh and Kenya
    Sen, K.
  • Determinants of Bangladesh’s leather exports to its major trade partners: a panel gravity model approach
    Shahriar, S.; Kea, S.; Abdullahi, N.M.; Rahman, R.; Islam, R.M.
  • Bilateral trade between India and Bangladesh: a general equilibrium approach
    Sikdar, C.; Ten Raa, T.; Mohnen, P.; Chakraborty, D.
  • Health labour market policies in support of universal health coverage: a comprehensive analysis in four African countries
    Sousa, A.; Scheffler, R.M.; Koyi, G.; Ngah, S.N.; Abu-Agla, A.; M’kiambati, H.M.; Nyoni, J.
  • What does the Heckscher-Ohlin model contribute to international trade theory? A critical assessment
    Subasat, T.
  • The Rybczynski theorem in the three-factor, two-good model
    Suzuki, K.
  • Antecedents and outcomes of supply chain management in Bangladesh
    Uddin, M.B.; Akhter, B.
  • Determinants of Pakistan’S bilateral trade with major trading partners: an application of heckscher-ohlin model and tinbergen gravity model
    Umair, M.; Sheikh, M.R.; Tufail, A.
  • On-demand service platform operations management: a literature review and research agendas
    Yan, X.; Liu, W.; Shi, V.; Liu, T.