The erosion of its competitiveness is raising concerns about the sustainability of Bangladesh's growth model based on exports of ready-made garments. To safeguard its comparative advantage in ready-made garments and diversify its exports basket, Bangladesh needs to increase its competitiveness....

This paper studies the effects of removing transport and trade barriers between Bangladesh and India on aggregate real income and the distribution of population and real income within both countries. The paper uses a spatial general equilibrium model calibrated to these two economies, along with...