Trade in financial services in developing countries: a case of the Bangladesh financial sector
Journal of International Trade Law and Policy
ISSN: 1477-0024
Article publication date: 19 June 2009
Abstract
Purpose
The purpose of this paper is to investigate the opportunities and challenging prospects for liberalizing financial services in various ways under the General Agreement on Trade in Services (GATS), in view of Bangladesh's interests and concerns.
Design/methodology/approach
Different tabular and graphical approaches and critical investigation are conducted to analyze the impact of financial liberalization to explore challenges and opportunities of liberalizing financial sector under GATS framework.
Findings
This paper finds that although Bangladesh does not make any commitment under GATS, the rate of liberalization in the financial sector has been quite rapid. As one of the least developed countries (LDCs), Bangladesh should have the flexibility to make commitments as well. From the present status of financial sector liberalization, this paper recommends that Bangladesh should adopt commitments because any non‐commitment sends the wrong signal to the global market and may reduce foreign direct investment.
Practical implications
The recommendation of this paper is very practical for trade policy for liberalizing financial sector in Bangladesh as well as other developing countries which already made great liberalization of this sector but did not make any commitments under GATS.
Originality/value
This paper is the first attempt to analyze the financial sector liberalization under GATS framework in the LDCs particularly in Bangladesh financial sector.
Keywords
Citation
Masudur Rahman, M. and Arjuman Ara, L. (2009), "Trade in financial services in developing countries: a case of the Bangladesh financial sector", Journal of International Trade Law and Policy, Vol. 8 No. 2, pp. 114-136. https://doi.org/10.1108/14770020910981461
Publisher
:Emerald Group Publishing Limited
Copyright © 2009, Emerald Group Publishing Limited