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Export Diversification and Network Effects: Evidence from a SAM-Based Analysis of Bangladesh

Year: 2026

Type: article

Abstract: This study analyzes the structural roles of economic sectors in Bangladesh using a social accounting matrix exhibiting linkage analysis and simulation. The linkage analysis identifies agriculture, retail trade, transport, and other services as key sectors of the economy. It further shows the simulation of expanding total export shares given to the sectors under different diversification scenarios (foster Vs present) to find out which scenario brings higher output gains. The result from simulation shows that foster scenario generates higher economic gains compared to the other scenario. It further identifies sectors from extensive categories more capable of bringing strong GDP gains while sectors from intensive category except for textiles marginally contributes to GDP and labor earnings in both scenarios. These findings provide empirical support for reconsidering sectoral priorities with intersectoral connection and inform how to promote diversification for inclusive development.

Source: Sustainability

DOI: 10.3390/su18094265

Authors: Mashrat Jahan, Horie Tetsuya, Manual Alejandro Cardenete

Institutions: Gazipur Agricultural University, Sophia University, Universidad Loyola Andalucía

Language: English

Topic: Economic and Technological Innovation

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $2,896