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Trade in financial services in developing countries: a case of the Bangladesh financial sector

Mohammad Masudur Rahman (United Nations University Institute of Advanced Studies, International Organizations Center, Pacifico‐Yokohama, Yokohama, Japan)
Laila Arjuman Ara (WTO Research Center, Aoyama Gakuin University, Tokyo, Japan)

Journal of International Trade Law and Policy

ISSN: 1477-0024

Article publication date: 19 June 2009

1585

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

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Emerald Group Publishing Limited

Copyright © 2009, Emerald Group Publishing Limited

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