Bangladesh exports held up rather well during the global recession, even as major exporting nations including China and India suffered heavily. More than 90% of the goods exported from Bangladesh are final consumer goods, such as apparels and frozen food. Import data for the two largest markets for Bangladeshi exports show that the import of final consumer goods either did not decline or declined much less than the non-consumption goods. Using insights from income-consumption theories, this article argues that the principal reason for the relatively good performance of the export sector is the nature of the export basket of Bangladesh.
