BANGLADESH INSTITUTE OF INTERNATIONAL AND STRATEGIC STUDIES

ECONOMIC RELATIONS BETWEEN RUSSIAN FEDERATION AND BANGLADESH: A PRELIMINARY ASSESSMENT

Author: Manzur Alam Tipu, Shamsur Rahman

DOI Link: https://www.doi.org/10.56888/BIISSj2001v22n3a2

ABSTRACT

This paper attempts to examine the causal factors thai seem to explain the past trends of economic relationship between Bangladesh, and the fanner USSR and then the Russian federation in order to assess the future potential. While geo-political considerations explain the initial spun in economic exchanges between USSR and Bangladesh right after the independence of Bangladesh, the relative insignificant volume of trade in later years can be attributed to a host of economic and non economic factors. Using the coefficients of a gravity model equation estimated by International Trade Center (lTC), covering the expon data of 55 developing countries into 75 markels, the potential expon from Bangladesh to Russian Federation is found to be approximately, US$ 2.8 billion. Reaching this volume, the same magnitude as Bangladesh's current expon to USA, would crucially depend on whether both countries can improve their business infrastructure, achieve healthy economic growth, and governments of both countries can implement some. policies conducive to business and trade.