Analyzing Export Potentiality of Light Engineering Sector in Bangladesh: Problems and Prospects

Abstract

Purpose: This study analyses the export potentiality of the light engineering sector in Bangladesh from two perspectives, including global positioning in terms of product-specific comparative advantage and the experience of the industry participants while trading globally. Methodology: This study applied quantitative and qualitative research methods to approach the current research objectives. The quantitative measure of Revealed Comparative Advantage (RCA) –Balassa’s Index has been applied to explore the positioning of Bangladeshi light engineering export items in the global market. Later, a qualitative interview was conducted to validate the opportunity sought in RCA outcomes and identify relevant problems and prospects of the industry. Findings: The results from quantitative data analysis are notably linked with qualitative data analysis. Because Bangladesh scores low RCA in light engineering export items and, thus, faces significant obstacles in the natural trade environment. The observed challenges lie in infrastructure, technical support, financial access, global market information, and promotion. Practical Implication: This study will support relevant policymakers in addressing the currently identified challenges to explore global opportunities for the light engineering sector. Value/Originality: Limited research on challenges and opportunities for the light engineering sector in Bangladesh presents this research outcome as a value-adding one. Limitation: Since the research reliability depends on the quality of data from industry respondents, the academic time frame for the dissertation and the COVID-threatened pandemic limited the scope of the current study for expanding the qualitative sample for data collection