Economic Reforms and India-Bangladesh Bilateral Trade: Can further liberalization help in promoting cooperation

Abstract

The paper discusses the economic reforms carried out in India and Bangladesh towards liberalization of trade and hence enhancement of bilateral trade cooperation between these two countries. It compares the sequence of economic reforms carried out in India and Bangladesh with the theoretical "proper" sequencing of economic reforms and examines the differences in the maturity of frameworks in these two countries. On the basis of these discussions, the papers attempts to find if further liberalization can promote bilateral trade cooperation between India and Bangladesh, and to what further extent and in what directions further liberalization of trade policy is required to achieve bilateral trade cooperation.