Purpose: This study evaluates Bangladesh's service trade competitiveness and
compares it with India, Nepal, Pakistan, and Sri Lanka from 1981 to 2022.
Methodology: It uses the International Market Share (IMS), Revealed
Comparative Advantage (RCA), and Trade Competitiveness (TC) indices. These
variables measure services sector market presence, export specialization, and trade
balance. Secondary data comes from 42 years of trade information in the World
Bank Development Indicators database.
Findings: The study shows that Bangladesh's global services trade market share
has increased, but it remains far behind India's. The RCA index of Bangladesh has
declined, indicating less service export specialization. The TC index remains
negative, indicating a service trade deficit.
Practical Implications: The findings can help policymakers by showing that
Bangladesh's competitiveness requires sector-specific strategies, institutional
fortification, improved infrastructure, and diversification into high-value services.
Value/Originality: This paper contributes to the existing literature by assessing
the competitiveness of Bangladesh's trade in services over a multi-decade period
and comparing it with neighbouring countries to find its regional standing.
Limitations: The study is quantitative in nature, done on an aggregate level, and
relies on secondary data. In the future, a mixed-method approach can be applied,
and comparative analysis can be done at sub-sector levels with more countries in
the same region.
