Exporting Intangibles and the Import Export Nexus in Bangladesh

Exporting Intangibles and the Import Export Nexus in Bangladesh | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Article Exporting Intangibles and the Import Export Nexus in Bangladesh Sarmin Akter, Nashid Al Mahadi, Nusrat Shammy This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-6913262/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract The export landscape of Bangladesh is undergoing a subtle yet significant transformation, with embedded services emerging as a critical yet underrecognized contributor. These services—logistics, trade finance, ICT, and compliance—initially designed to support the import sector, are increasingly being internationalized, forming a new pillar of the country’s trade potential. Despite their growing relevance, these embedded services remain statistically invisible and excluded from export policy frameworks. This gap limits strategic alignment, underutilizes economic potential, and obscures an important revenue stream for firms. Addressing this, the study aims to explore the nature, growth trajectory, and exportability of such services within the ready-made garments (RMG) value chain. A mixed-methods approach was adopted, incorporating trend analysis (2013–2023), institutional document review, eight semi-structured interviews, and a survey of 30 export-oriented service firms. Findings reveal an 8.4% annual growth rate in embedded service exports. Over 40% of surveyed firms generate the majority of their revenue from these services, targeting markets in South and Southeast Asia, and the Middle East. Yet, regulatory ambiguity and the absence of formal recognition continue to constrain their scalability. The study recommends urgent policy reforms to recognize, classify, and incentivize embedded services, positioning them as a strategic lever for trade diversification, digital competitiveness, and a successful transition beyond LDC status. Business and commerce/Business and management Social science/Business and management Embedded service exports Trade in services Import-export nexus Bangladesh economy Logistics and ICT trade Trade diversification Export policy reform LDC graduation Development economics Global value chains Figures Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 1. Introduction In an era of global economic realignment and digital transformation, the boundaries between goods and services in international trade are increasingly blurred. Service-oriented activities—such as logistics, compliance, trade finance, and ICT—are no longer auxiliary support systems but have emerged as independent economic engines. For developing countries, particularly those with manufacturing-heavy export models, identifying and leveraging service components embedded within traditional trade flows is becoming critical for sustainable competitiveness. Bangladesh stands at a pivotal juncture in this evolution. The country is transitioning from Least Developed Country (LDC) status by 2026, and in doing so, it must reconsider the full spectrum of assets that contribute to its trade economy. Among the most overlooked of these assets are embedded services linked to the import-export interface. This study addresses the urgency and opportunity of recognizing and scaling these services as formal export products. Over the last four decades, Bangladesh has transformed from an agrarian economy to one increasingly dependent on manufacturing and trade. This transformation is most visible in the rapid growth of the ready-made garments (RMG) sector, which has become the cornerstone of the nation’s industrialization. As of FY 2022–23, RMG exports exceeded $ 46.99 billion, accounting for more than 84% of the country’s total export earnings (BGMEA, 2023). The sector plays a vital role in GDP growth, female employment, and foreign currency reserves. However, this manufacturing dominance masks a deeper transformation: the rise of service activities that facilitate the production and movement of these goods. Services such as freight forwarding, customs processing, trade documentation, L/C-based financing, regulatory compliance, and digital monitoring systems are integral to the efficiency and success of Bangladesh’s export operations. Though these services originate within the import system—supporting the inbound flow of raw materials and capital goods—they increasingly contribute to the export process either as value-added components bundled with products or as independently traded offerings. Globally, the trade in services has grown faster than trade in goods over the past decade, especially in developing economies integrating into regional and global value chains. The WTO and UNCTAD have emphasized that services such as logistics, ICT, and finance enhance productivity, diversify trade portfolios, and build resilience against market shocks. Yet, these categories often remain underreported or misunderstood within national policy frameworks. This mismatch is particularly acute in Bangladesh, where services embedded in import processes are rarely recognized as export drivers. Despite their growing economic contribution, embedded services in Bangladesh are largely excluded from formal export classifications, incentive frameworks, and strategic planning instruments. Current trade policies focus on tangible products and broad service categories like IT-enabled services (ITES) or business process outsourcing (BPO). Consequently, services that are functionally internationalized—such as digital customs platforms, regional logistics networks, and compliance software—remain invisible in trade statistics and unsupported by institutional mechanisms. This lack of recognition results in missed opportunities for revenue generation, technological innovation, and job creation. Moreover, this invisibility has policy implications. Firms offering these services are unable to access export-related tax benefits, foreign currency retention facilities, or government-backed credit schemes. They also face regulatory ambiguity regarding whether and how they can qualify as “exporters.” This regulatory gap not only stifles firm-level innovation but also limits Bangladesh’s macroeconomic adaptability as it prepares for a more competitive post-LDC future. Although Bangladesh’s RMG sector and broader trade dynamics have been studied extensively, there is a notable lack of research on the specific subset of services that emerge from, and are embedded in, the import-export nexus. Existing literature typically focuses on large-scale export sectors or standalone service industries like fintech and e-commerce. Rarely do academic or policy studies explore how import-supportive services—logistics operations, customs digitization, trade finance instruments, or compliance ecosystems—evolve into exportable assets. This gap leaves policymakers with an incomplete understanding of Bangladesh’s full trade capacity and limits the ability to design holistic, future-oriented trade policies. Preliminary analysis from this study reveals that from 2013 to 2023, embedded service exports grew from USD 3.6 billion to USD 8.9 billion, registering a compound annual growth rate (CAGR) of 8.4%. Sectoral data indicates that ICT services accounted for 28% of the total by 2023, followed by logistics and trade finance services. Firms with high digital readiness—those offering real-time tracking, automated documentation, API-enabled software, or cloud-based compliance platforms—tend to perform better in export markets. Notably, more than 40% of the surveyed firms earn the majority of their revenue from these service exports, indicating their transition from ancillary operations to core business models. Geographically, these services are being exported to South Asia (43.3%), Southeast Asia (30%), and the Middle East and Africa (26.7%). Key regional partners include India, Nepal, Myanmar, and Gulf countries, where demand for scalable digital logistics, customs automation, and fintech platforms is increasing. However, regional interoperability challenges—such as inconsistent trade protocols and digital system incompatibility—remain significant barriers. Bangladesh’s institutional landscape has made notable progress in digitization, innovation, and investment facilitation. Initiatives like Startup Bangladesh and the a2i programme have contributed to the growth of ICT-based service models. The Bangladesh Investment Development Authority (BIDA) has streamlined business registration through online one-stop services. Bangladesh Bank’s Export Development Fund (EDF) and digital processing of back-to-back L/Cs have reduced transaction times and improved compliance. Despite these advances, national trade strategy documents—including the National Export Strategy (NES), the ICT Policy, and the Logistics Master Plan—do not explicitly classify or incentivize embedded services. The Bangladesh Bureau of Statistics (BBS) and Bangladesh Bank continue to categorize service flows using broad aggregates, with no clear metrics for embedded or hybrid services. This lack of granularity impedes evidence-based policy and limits access to global service trade reporting frameworks such as the Extended Balance of Payments Services Classification (EBOPS). This study seeks to bridge the analytical and institutional gaps in understanding embedded service exports in Bangladesh. Specifically, it aims to: Identify and define the types of services that originate from the import sector but are exported independently or as part of value chains. Assess their economic significance through trend data, firm-level revenue shares, and regional market integration. Analyze the regulatory, statistical, and institutional barriers that hinder their recognition and support. Explore the technological and infrastructural enablers—such as digital platforms and logistics modernization—that facilitate their internationalization. Recommend policy adjustments and classification reforms to incorporate these services into national export strategy. The overarching aim of this study is to reconceptualize Bangladesh’s trade capacity by spotlighting the overlooked yet rapidly growing domain of embedded service exports. By examining the intersection between import facilitation and service internationalization, the study proposes a broader and more inclusive framework for understanding export competitiveness in the 21st century. This approach is particularly significant as Bangladesh prepares to exit the LDC category and embrace a more self-reliant, diversified, and technology-enabled trade model. Formally recognizing and supporting embedded services can unlock multiple benefits: increased export earnings, enhanced digital capabilities, greater regional integration, and reduced vulnerability to external shocks. As global trade becomes more service-intensive and digitized, the ability of countries like Bangladesh to measure, incentivize, and promote embedded services will be a key determinant of long-term economic resilience and global relevance. 2 Literature Review Bangladesh’s export economy, long anchored in the ready-made garments (RMG) sector, is undergoing a multidimensional transformation driven by the convergence of emergent services, digital innovation, and socio-economic imperatives. A comprehensive survey of the academic and policy literature reveals a layered narrative of growth, resilience, and vulnerability that maps both sectoral strengths and systemic constraints. The RMG sector remains the bedrock of Bangladesh’s export architecture, contributing substantially to GDP, foreign exchange earnings, and, critically, female employment. (Md. Sajib Hossain) emphasize the global expansion of RMG exports, catalyzed by geographical diversification strategies and cost competitiveness. However, persistent inefficiencies—such as infrastructural deficits, labor productivity issues, and prolonged lead times—continue to erode competitiveness. (Islam) and (Professor Dr. Engr. Ayub Nabi Khan) highlight the sector’s embedded socio-institutional challenges, including labor rights violations, workplace safety lapses, and environmental degradation, despite improvements in gender parity and job creation. These challenges underscore the need for corporate accountability, robust regulatory frameworks, and adherence to international labor and environmental standards. (Rakib) and insights from (MIAN) further contextualize these issues within a broader structural inertia—marked by excessive reliance on low-cost labor, limited industrial upgrading, and weak innovation capacity. The literature consistently advocates for modernization, value addition, and workforce skill enhancement to meet evolving global compliance benchmarks and consumer expectations. In response to the fragility of mono-sectoral export reliance, a growing body of research urges strategic industrial diversification. (Razzaque) calls for a recalibration of policy incentives to nurture alternative sectors beyond garments. (Prabir De) shift the discourse to IT-enabled services and logistics, positing these as high-potential growth sectors contingent on regulatory alignment and digital infrastructure enhancement. In parallel, (Florido-Benítez) underscores the rise of e-commerce as a transformative force, advocating for inclusive digital frameworks to integrate marginalized actors and ensure equitable access to global markets. Complementing these perspectives is a growing recognition of the role of service-sector integration in export expansion. (Habib) identifies the financial sector as pivotal in enabling export operations, emphasizing trade finance, institutional modernization, and systemic efficiency as central concerns. (Areej Aftab Siddiqui) expands on this by linking logistics infrastructure—especially transport and port management—to overall export performance. These infrastructural limitations not only constrain supply chain efficiency but also blunt the potential productivity gains achieved in manufacturing. Inadequate service linkages thus remain a critical gap in Bangladesh’s export ecosystem, necessitating investments in multimodal logistics, digital payment systems, and trade facilitation mechanisms. The literature also brings into focus the role of trade policy and institutional reform in shaping export trajectories. The Bangladesh Tariff Commission (Bellal Hussain Molla) critiques the distortive effects of the current tariff regime and advocates for rationalized tariff structures to promote industrial competitiveness. Extend this argument through a regional lens, emphasizing the benefits of deeper trade integration with India and neighboring economies. Such harmonization, they argue, could unleash latent synergies, reduce transaction costs, and enhance market access. (M.A) positions these debates within a broader geopolitical context, identifying both strategic opportunities and institutional vulnerabilities associated with South Asian trade. Meanwhile, (Chowdhury) calls for proactive market diversification beyond the European Union and United States, warning against overdependence on a narrow set of export destinations and urging the development of resilience against global demand volatility. A parallel theme in the literature is the centrality of social sustainability, labor rights, and inclusive development to the export agenda. (ADDRESSING CHILD LABOUR IN THE BANGLADESH GARMENT INDUSTRY 1995–2001 ) and(BGMEA) document significant progress in labor standards—particularly the elimination of child labor and improvements in environmental compliance—fueled by international partnerships and targeted donor support. Yet these gains are uneven. (Selim Raihan) and (MAHMUD) expose lingering vulnerabilities, including job insecurity, stagnant wages, and fragmented labor protections. The UNRISD report (Rahman) situates these concerns within the broader framework of sustainable industrial policy, arguing that equitable labor systems are not only ethically essential but economically prudent for long-term competitiveness. (Osmani) adopts a historical lens to reflect on Bangladesh’s post-independence development, recognizing progress in health and education but cautioning against growing income inequality, regional disparities, and emerging trade imbalances. These structural issues demand policy coherence across industrial, labor, and social sectors to ensure that export-led growth does not exacerbate exclusion or inequality. The digital transformation of Bangladesh’s export apparatus is another critical axis of analysis. (OLHA PYROH) and(Muhammad) highlight the increasing integration of digital tools in trade management, particularly in customs, documentation, and logistics. These innovations enhance process adaptability and transparency, reduce transaction costs, and support more responsive risk management systems. (Keya) and(Abdullah Junayed) argue for a decisive transition towards technology-intensive manufacturing, which would not only diversify the export basket but also increase value chain resilience amid global disruptions. (Rangsungnoen) introduces systems-based performance frameworks that offer granular metrics for assessing export process efficiency, while (ALFAHD) provides micro-level case studies illustrating how small enterprises confront and navigate regulatory and logistical barriers. These operational insights ground the broader theoretical arguments in the lived realities of exporters and point to actionable areas for policy and technical support. At a macroeconomic level, (M. M. Rahman) introduces econometric evidence linking export performance to variables such as exchange rate volatility, inflation, and global demand cycles. His findings underscore the necessity of maintaining macroeconomic stability to preserve competitiveness. (Helal Uddin) reinforces this by tracing causal relationships between trade activity and economic growth across low-income countries, emphasizing the catalytic potential of exports when embedded within a stable policy environment. This macroeconomic framing provides an essential backdrop to sectoral analyses, suggesting that without fiscal prudence, monetary stability, and coherent industrial policy, micro-level reforms may yield suboptimal outcomes. Taken together, these thematic strands coalesce into a compelling narrative that situates Bangladesh’s export economy at a critical juncture. The literature reviewed herein converges on the thesis that sustainable export growth is not merely a function of sectoral performance or market dynamics but a holistic interplay of structural reform, institutional capability, social equity, and technological adaptation. Policy recommendations emerging from this body of work are both immediate and long-term. In the short term, targeted investments in logistics, digital trade facilitation, and financial services could unlock existing bottlenecks. Over the medium term, institutional reforms—in tariff rationalization, compliance enforcement, and regional trade agreements—are necessary to realign incentives and foster integration. In the long term, embedding inclusive labor practices, gender equity, and environmental stewardship into the national export strategy will be crucial for ensuring that economic gains translate into social progress. The trajectory ahead requires a recalibration of Bangladesh’s development model—from one driven by low-cost labor and preferential market access to a strategy grounded in innovation, resilience, and inclusivity. As Bangladesh prepares to graduate from Least Developed Country (LDC) status, the imperative for such a comprehensive and forward-looking export strategy becomes even more urgent. The literature makes it clear that the future of Bangladesh’s export competitiveness lies in its ability to reconcile growth with governance, technology with tradition, and global integration with local inclusion. By navigating these complex intersections, Bangladesh can transform its export economy into a robust engine for equitable and sustainable development. 3 Methodology This research adopts a qualitative methodological orientation, complemented by descriptive trend analysis, to comprehensively investigate the characteristics, operational dynamics, and policy frameworks surrounding the internationalization of embedded service exports emerging from Bangladesh’s import sector. Given the nascent and under-theorized nature of this research domain—compounded by the limited availability of disaggregated, sector-specific data—this study employs a mixed-methods approach grounded in interpretive inquiry. Such an approach is deemed appropriate for capturing both measurable trade patterns and the nuanced, experience-based insights of actors operating within the broader import-export ecosystem. 3.1 Research Design and Justification A qualitative exploratory design forms the methodological foundation of this study. This design is particularly suited to uncovering the complex, layered processes involved in service delivery within trade environments, especially in contexts where such services are systematically underrepresented in national economic statistics and policy instruments. The justification for this research design is twofold. First, the nature of embedded services—such as customs clearance, logistics coordination, trade finance facilitation, and digital platform integration—renders them inherently difficult to isolate within traditional statistical frameworks. These services are typically nested within broader operational processes, often treated as inputs rather than discrete economic outputs. Second, unpacking the institutional, regulatory, and business-level dynamics that drive the evolution and exportability of such services necessitates direct engagement with stakeholders situated at multiple levels of the value chain. These include policymakers, regulators, fintech developers, customs officials, and logistics providers. Accordingly, the research design is structured around triangulation of multiple data sources—documentary evidence, expert interviews, and field-level surveys—to ensure analytical depth and contextual accuracy. 3.2 Data Sources and Collection Techniques 3.2.1 Secondary Data Secondary data were collected from a diverse array of authoritative national and international sources spanning the period 2015 to 2024. These data sources were selected for their institutional credibility, relevance to the topic, and capacity to provide longitudinal insights into trade flows, policy evolution, and sectoral performance. Key sources include: Bangladesh Bank (BB) Data on trade finance mechanisms, utilization of the Export Development Fund (EDF), trends in Letters of Credit (L/Cs), and services-related statistics derived from balance of payments accounts. Export Promotion Bureau (EPB) Annual and monthly statistical releases concerning service export revenues, disaggregated where available by sector and destination. Bangladesh Bureau of Statistics (BBS) Sector-specific contributions to GDP, employment trends in service industries, and time-series data related to trade and business services. International Organizations Reports and datasets from the World Trade Organization (WTO), United Nations Conference on Trade and Development (UNCTAD), World Bank, and International Trade Centre (ITC), focusing particularly on global services trade benchmarks, logistics performance indicators, and digital infrastructure assessments related to Bangladesh. National Policy Documents Strategic policy instruments such as the National Export Policy, ICT Policy, Logistics Sector Master Plan, BBIN Connectivity Framework, and the National Export Strategy (NES) were examined to assess the extent to which embedded service exports are addressed—or overlooked—within official trade planning. Together, these secondary sources facilitated the identification of structural patterns, institutional dynamics, and the evolutionary trajectory of service export capabilities within import-linked operations. 3.2 Primary Data Primary data were collected using two interrelated qualitative methods: semi-structured expert interviews and a structured field-level survey. Semi-Structured Interviews (n = 8) : Participants for the interviews were purposively selected based on their strategic positions in key institutions such as Bangladesh Bank, the Export Promotion Bureau, the customs department, fintech companies, logistics firms, and IT exporters. The objective of the interviews was to elicit rich, experience-based insights into: Operational workflows and service delivery models; Pathways through which import-related services are being internationalized; Barriers to formal export classification; Perceptions of existing policy support (or lack thereof). Four interviews were conducted in person—split between Dhaka and Chattogram—while the remaining four were administered virtually using Zoom and Google Meet platforms. Each session lasted between 30 and 45 minutes. Verbal informed consent was obtained prior to each interview, and rigorous anonymization procedures were adhered to, ensuring compliance with established ethical research protocols. Field Survey (n = 30) : In parallel, a structured questionnaire was disseminated via Google Forms to professionals engaged in: Freight forwarding and logistics management; Software development tailored for trade and customs applications; Consultancy services related to customs and regulatory compliance; Fintech platforms supporting digital L/Cs and trade finance solutions. Participants were identified through purposive sampling, drawing on professional networks from the Bangladesh Association of Software and Information Services (BASIS), the logistics wings of BGMEA, and curated trade-related directories. The survey instrument collected both quantitative and qualitative data regarding: Types of services offered; Revenue dependence on export markets; Geographic reach and target markets; Constraints faced in internationalization and scalability; Institutional support and regulatory clarity. 3.3 Data Analysis Procedures Data were subjected to two primary forms of analysis—descriptive trend analysis and thematic content analysis—ensuring a balanced methodological approach that integrates both numeric indicators and narrative insights. Descriptive Trend Analysis : Quantitative data from secondary sources were processed using Microsoft Excel to construct visual and statistical representations of: Longitudinal service export growth (2013–2024); Sectoral disaggregation by type (logistics, ICT, trade finance); Geographic patterns of service exports, especially toward BBIN and ASEAN regions. This trend analysis allowed for the identification of temporal shifts and structural patterns that support the central thesis of embedded service export growth. Thematic Content Analysis : Transcribed interview data were analyzed using NVivo 12 through an inductive coding process. Recurring themes were identified and grouped into clusters, including: Regulatory Gaps — highlighting inconsistencies and absence of classification in official policy; Technology Adaptation — emphasizing the role of digital tools in service scalability; Regional Opportunity — exploring market expansion into South and Southeast Asia; Visibility Barriers — referring to institutional and statistical invisibility; Policy Disconnect — pointing to the misalignment between operational realities and export incentives. This method facilitated the construction of a grounded theoretical narrative that connects firm-level operations to national policy structures. Triangulation Strategy : To ensure robustness and mitigate bias, triangulation was employed across multiple dimensions: Source Triangulation —cross-validating information from statistical records, interviews, and surveys; Respondent Triangulation —ensuring coverage from both public-sector regulators and private-sector implementers; Theoretical Triangulation —analyzing patterns through both economic and institutional lenses. Where discrepancies arose between official narratives and practitioner experiences, these were critically examined to reveal gaps in recognition, support, or measurement. 3.4 Validity, Reliability, and Research Limitations Several steps were undertaken to ensure the validity and reliability of this study: A pilot version of the survey was tested with three professionals to assess clarity, interpretability, and contextual relevance. Two independent academic peers reviewed the emerging codes and interpretations during the thematic analysis to provide external validation and reduce interpretive bias. Triangulation of methods and sources served as a further safeguard against subjectivity. Nonetheless, certain limitations are acknowledged: The unavailability of disaggregated national data on embedded service exports restricted the scope of quantitative depth. Confidentiality concerns led some respondents to withhold sensitive information, especially regarding financial operations or client networks. As with most qualitative research, generalizability is limited. However, the findings offer high analytical value for similar trade ecosystems in emerging economies. 3.5 Ethical Compliance This study was conducted in full adherence to international ethical standards for social science research. All participation was voluntary, and informed consent—verbal in format—was secured from every respondent. No personally identifiable information was recorded, stored, or disclosed. Given the non-sensitive and professional nature of the data, and in accordance with local academic practice, formal Institutional Review Board (IRB) clearance was not required. 3.6 Conceptual Framework This study is conceptually grounded in the notion of embedded service exports —defined as services that originate within import-dependent processes but acquire independent value as exportable offerings. Examples include digital L/C platforms developed for importers but now marketed to foreign banks, or logistics systems initially created for domestic factory use but now deployed in regional trade corridors. This framework enables a reinterpretation of traditional trade flows and challenges the binary separation between goods and services, as well as between import and export activities. It underscores the potential for non-traditional, service-driven sectors to become pivotal in export growth, especially when supported by enabling institutions, digital transformation, and forward-looking trade policy. 4 Results and Discussions This section presents the findings derived from secondary data analysis, survey data processed using SPSS (Version 26), and qualitative insights from semi-structured interviews. The results are structured into three parts: (1) Descriptive trend analysis of service exports linked to the import sector; (2) Survey-based findings analyzed through descriptive and inferential statistics; and (3) Thematic insights based on interview data. 4.1 Descriptive Trend Analysis of Service Exports (2013–2024) Source: Author’s visualization based on Bangladesh Bank, EPB, and BBS data. From Figure-1 Data from Bangladesh Bank, EPB, and BBS reveal a steady upward trend in service exports associated with import-linked sectors, particularly in logistics, trade finance, and ICT. Service exports grew from USD 3.6 billion in 2013 to USD 8.9 billion in 2023, reflecting a compound annual growth rate (CAGR) of approximately 8.4%. Sectoral contributions indicate that ICT services accounted for 28% of the total by 2023, driven by the expansion of software and digital platform services. Logistics and freight forwarding contributed 22%, with notable acceleration post-2020 due to regional supply chain restructuring. Trade finance and fintech services represented 12%, primarily driven by the adoption of electronic L/C platforms and remittance facilitation tools. Geographically, BBIN countries (Bhutan, Bangladesh, India, Nepal) emerged as key regional recipients of these services, while ASEAN markets demonstrated modest integration growth. These findings suggest a latent export potential within import-aligned services, especially in contexts where digital transformation, regulatory modernization, and regional trade corridors are simultaneously evolving. 4.2 Survey Findings (n = 30): SPSS Analysis 4.2.1 Descriptive Statistics Source: Author’s SPSS output from structured field survey. From Figure-2 Logistics and Freight Forwarding emerged as the most dominant service type, reported by 11 out of 30 respondents (36.7%). This confirms the growing role of logistics firms in providing exportable services linked to import activities. Trade-Related Software Services followed, cited by 8 respondents (26.7%), reflecting the increasing role of digitization in cross-border trade facilitation. Customs Consultancy and Fintech Services were mentioned by 6 and 5 respondents, respectively. These include firms involved in customs automation, e-L/C platforms, and trade finance apps. This pie chart ( Figure-3 ) illustrates the regional distribution of embedded service exports, based on survey data. The three key regions captured are: South Asia (43.3%) : South Asia accounts for the largest portion of the export market. This dominant share indicates a strong trade and service linkage between the surveyed firms and countries within South Asia—possibly including India, Bangladesh, Sri Lanka, Nepal, and Pakistan. The prominence of South Asia could be attributed to geographical proximity, shared regulatory frameworks (such as SAARC agreements), growing demand for logistics and digital services, and favorable trade relations. This region may also offer cost-effective opportunities for business process outsourcing, IT-enabled services, and logistics technologies, all of which fall under the umbrella of embedded service exports. Southeast Asia (30.0%) : Southeast Asia is the second largest destination, highlighting a robust and growing demand from countries such as Indonesia, Vietnam, Thailand, Malaysia, and the Philippines. The Association of Southeast Asian Nations (ASEAN) economic integration and digital transformation efforts make this region attractive for service exports, particularly in areas like e-commerce logistics, fintech platforms, supply chain software, and smart customs solutions. The strong trade infrastructure and expanding consumer base in this region support sustained growth in service exports. Middle East and Africa (26.7%) : Though the smallest among the three, the Middle East and Africa still represent a substantial market share. This region’s increasing investment in logistics modernization, smart port systems, and digital customs platforms has driven demand for advanced service exports. Countries such as the UAE, Saudi Arabia, Kenya, and Nigeria are leading the charge in digital transformation, making them prime export targets. Moreover, the region’s need for efficient cross-border trade systems, especially in landlocked and developing countries, enhances the appeal of embedded service solutions. Revenue Contribution from Service Exports : This pie chart (Figure-4) breaks down the extent to which service exports contribute to firm revenues, based on survey responses. It categorizes respondents into three groups depending on the proportion of their revenue derived from exports: More than 50% Revenue from Exports (40%) : A significant portion of respondents—40%—reported that exports now contribute over half of their total revenue. This is a strong indicator that embedded service exports are not only viable but are becoming a central pillar of business sustainability and growth. These firms likely have well-established international networks and offer highly scalable solutions in areas such as logistics technology, digital customs, and trade facilitation platforms. This figure reflects a mature integration of international markets into their business model. 30–50% Revenue from Exports (26.7%) : Over a quarter of respondents stated that export activities contribute between 30% and 50% of their revenue. This represents firms in a growth phase of export development—possibly expanding into new regions, scaling their operations, or increasing their service portfolio. These companies might still be balancing between domestic and international markets but are evidently investing in export-oriented strategies. Less than 30% Revenue from Exports (33.3%) – Implied : Although not explicitly reported in the original data, the remaining portion—33.3%—can logically be inferred to represent firms for whom exports contribute less than 30% of their revenue. These may include newer entrants to international markets or firms that primarily operate domestically but are exploring cross-border opportunities. The relatively smaller share of export-linked revenue suggests a potential area for growth, especially as global demand for embedded services continues to rise. 4.2.2 Cross-tabulations and Inferential Insights Chi-Square Test : A significant association was found between firm type (logistics, software, consultancy) and target export market (χ²(6) = 11.42, p < 0.05). Logistics firms were more likely to target BBIN countries, while software providers targeted ASEAN and MENA regions, which is shown below Figure-5; Source: SPSS output generated from structured field survey data. Correlation Analysis : Pearson correlation revealed a positive relationship ( r = 0.48, p < 0.01) between firms’ digital readiness and the share of revenue from export services, indicating that technology adoption enhances export performance. Barriers to Growth : Regulatory ambiguity (76.7%) Data classification issues (63.3%) Lack of policy incentives (56.7%) Insufficient regional integration (46.7%) These findings underscore the need for tailored policy support, digital ecosystem strengthening, and regional service trade facilitation. 4.3 Thematic Findings from Interviews The eight expert interviews revealed five dominant themes relevant to the institutional and operational realities of service exports from the import sector: 1. Regulatory Ambiguity and Service Classification Gap Participants repeatedly emphasized the absence of clear classification for services embedded within import functions, such as customs facilitation or supply chain analytics. This hampers recognition in official export records and inhibits incentive access. “Our digital customs interface serves foreign clients, but it’s not listed under any official export category.” — Customs Tech Executive 2. Underutilized Regional Opportunities Several respondents noted missed opportunities in BBIN and BIMSTEC regions , citing weak logistics coordination and low cross-border digital interoperability as key constraints. “Regional demand exists for our logistics platforms, but paperwork and procedural mismatches hold us back.” — Freight Forwarding Manager 3. Technology Adaptation as a Competitive Enabler Technology-enabled service firms (e.g., fintech and logistics software providers) exhibited higher international outreach. Firms with API-enabled systems and cloud-based operations were more export-active. 4. Visibility Constraints and Policy Disconnect Many interviewees highlighted a disconnect between ground-level service innovations and high-level trade policy , which continues to prioritize tangible goods over intangible service flows. “The current export policy doesn’t reflect our role—even though we handle cross-border L/Cs every day.” — Fintech Founder 5. Demand for Institutional Recognition and Incentives Stakeholders advocated for formal recognition of embedded service exports through tax rebates, foreign currency earnings quotas, and export certificates—mechanisms already available to traditional exporters. The results collectively illustrate that while embedded service exports from the import sector are growing in volume and diversity, they remain underreported , under-incentivized , and underintegrated into national trade strategies. Institutional recognition, regulatory clarity, and targeted support for digital service exports are essential to unlocking their full economic potential. 5 Conclusion Bangladesh stands at a pivotal moment in its economic trajectory. While the ready-made garments (RMG) sector continues to underpin its export economy, this study reveals an emerging and underexplored growth driver: the internationalization of service exports rooted in the import sector. Services such as logistics, trade finance, ICT, regulatory compliance, and customs consulting—once seen as ancillary—are now being reconfigured and exported, signaling a structural transformation in the nation’s trade dynamics. This research identifies a paradigm shift: traditionally import-oriented services are evolving into exportable assets. Functions such as customs facilitation, inventory management, digital letters of credit, and compliance tracking—originally designed to support RMG and other industrial operations—have matured into standalone services with global demand. Their rise has been catalyzed by digital innovation, regional integration, and a growing international appetite for knowledge-intensive offerings. Empirical data underscores this transformation. Between 2013 and 2023, Bangladesh’s import-linked service exports more than doubled, growing from USD 3.6 billion to USD 8.9 billion. The ICT sector alone contributed 28% of this increase, with logistics and trade finance also driving significant gains. Notably, over 40% of surveyed firms in this study now derive the majority of their revenue from export-oriented services. These findings reinforce the notion that embedded services have moved from the periphery to the core of Bangladesh’s trade competitiveness. Yet, a critical gap persists: institutional recognition remains absent. Despite their growing economic contribution, embedded service exports are largely unrecognized in national trade statistics and policy frameworks. They are excluded from export credit schemes, tax rebates, and other incentives typically available to goods exporters. Regulatory ambiguity and outdated data classifications hinder these services from being fully leveraged as strategic export drivers. Fieldwork comprising 30 structured surveys and 8 in-depth interviews highlights this disconnect. Stakeholders—including logistics providers, fintech startups, customs consultants, and software developers—consistently report that while their operations are international in scope, they are not acknowledged as exporters under current regulatory regimes. This “visibility gap” constrains investment, dampens innovation, and limits scaling potential. Digital transformation is emerging as a critical enabler. Firms with advanced digital capabilities—cloud-based infrastructure, API integration, and regional digital interoperability—consistently outperform their peers. The correlation between digital readiness and export revenue is both strong and statistically significant (r = 0.48, p < 0.01). These findings suggest that digital maturity is a key determinant of success in service export markets and should be prioritized in policy frameworks. The regional dimension further underscores the opportunity. South Asia accounts for 43.3% of Bangladesh’s embedded service exports, followed by Southeast Asia (30%) and the Middle East & Africa (26.7%). These markets are increasingly demanding digital logistics, fintech tools, and compliance platforms—areas in which Bangladeshi firms have demonstrated capacity and innovation. However, challenges such as inconsistent trade protocols and a lack of standardized digital frameworks across BBIN and ASEAN countries remain significant obstacles to regional expansion. Policy reform is therefore imperative. To harness this momentum, key national instruments—such as the National Export Strategy (NES) and the Logistics Master Plan—must be updated to reflect the evolving trade landscape. Specifically, reforms should include: Introducing disaggregated export classifications for embedded services Providing tax and currency incentives to qualifying service exporters Developing export certification mechanisms tailored to service-based operations Enhancing institutional capacity through targeted training in trade finance, ICT, and customs modernization This policy shift is particularly urgent as Bangladesh approaches its graduation from Least Developed Country (LDC) status in 2026. With preferential market access set to decline, the country must transition from a low-cost, goods-based model to a value-added, service-integrated trade framework. Alignment with the WTO’s Trade in Services Agreement and strategic use of the EU’s GSP + framework can support this transition and unlock new markets. In conclusion, this study establishes that Bangladesh’s future export growth will be defined not by volume but by value and versatility—anchored in services that originate within the import sector but evolve into globally demanded solutions. Recognizing, measuring, and incentivizing these services is not only a matter of policy fairness or economic efficiency; it is a strategic imperative for ensuring a resilient, diversified, and future-ready export economy. Declarations Ethics approval and consent to participate Ethical approval for this study was waived as the study involved an anonymous survey of adult participants and posed minimal risk. Consent for publication Informed consents (Consent to Participate and Consent to Publish) were obtained from all participants where applicable. Funding No funding was received for conducting this study. Author Contribution SA – Conceptualization, Methodology, Data collection, Analysis, Writing - original draft. KNAM – Introduction, Literature review, Referencing and data collection. SNS – Data Collection, WritingFunding- No funding was received for conducting this study.Acknowledgements- We would like to thank all participants for their valuable time and cooperation during the survey. Acknowledgement We would like to thank all participants for their valuable time and cooperation during the survey. Data Availability The datasets generated during and/or analysed during the current study are available from the corresponding author on reasonable request. References Abdullah Junayed, Fowjia Akter. "ECONOMIC GROWTH AND CHALLENGES OF READYMADE GARMENTS IN BANGLADESH ." 2023. "ADDRESSING CHILD LABOUR IN THE BANGLADESH GARMENT INDUSTRY 1995-2001 ." 2004. ALFAHD, OSAMA ABDULHAKEEM HEZAM. "OPPORTUNITIES AND CHALLENGES ON IMPORT AND EXPORT PROCESS: CASE OF IBISMA’S PARTNERS." 2024. Areej Aftab Siddiqui, San Vita. " Impact of Logistics Performance on Trade with Specific Reference to Garment Sector in Cambodia, Bangladesh and India." Sage Journal (2018). Bellal Hussain Molla, Md. Raihan Ubaidullah, Md. Abdul Latif, Mohinul Karim Khondker. "Prospects of Market Expansion of Domestic Cosmetics and Toiletries Products." Bangladesh Journal of Tariff and Trade 3 (2015). BGMEA. "SUSTAINABILITY REPORT 2020." 2020. Chowdhury, Md Arman. "Global Market Expansion of Bangladeshi Garment Products: Challenges, Strategies, and Economic Implications." 2023. Florido-Benítez, Lázaro. "EXPLORING THE SUSTAINABLE FUTURE OF E-COMMERCE COMPANIES THROUGH A DIGITAL MARKETING AND LOGISTICS CONTEXT." Journal of Management, Marketing and Logistics 11.1 (n.d.): 17-312. Habib, Dr. Shah Md Ahsan. "Trends and Challenges of Trade Services by Banks:Bangladesh Context." SSRN (2017). Helal Uddin, Mst. JamiaJannat Khanam. "Import, Export and Economic Growth: the Case of Lower Income Country." IOSR Journal of Business and Management (IOSR-JBM) 19.1 (2017): 37-42. Islam, Samira Binte Saif and Anisul M. "Growth, Development and Selected Social Sustainability Challenges Facing the Bangladesh Export Garment Industry." MDPI (2025). Keya, Farjana Yeasmin Chowdhury & Alma Jahan. "Readymade Garments Exports from Bangladesh: Challenges and Possible Way-Out." International Journal of Business and Management; 17 (2022). M.A, HASAN. "EXPLORING THE FUTURE OF BANGLADESH IN THE CONTEXT OF SOUTH ASIAN DYNAMICS: OPPORTUNITIES AND CHALLENGES." AnAlysis And ForecAsting. iMeMo Journal (2025): 61-72. MAHMUD, NAILA KABEER AND SIMEEN. "GLOBALIZATION, GENDER AND POVERTY: BANGLADESHI WOMEN WORKERS IN EXPORTAND LOCAL MARKETS." Journal of International Development (2004): 93-109. Md. Sajib Hossain, Rashedul Kabir , Enamul Hafiz Latifee. "Export Competitiveness of Bangladesh Readymade Garments Sector: Challenges and Prospects." International Journal of Research in Business and Social Science 8 (2019). MIAN, MOHAMMAD EMDAD ULLAH. "A STUDY ON COMPETITIVENESS OF READY-MADE GARMENTS FOR EXPORT-LED ECONOMIC GROWTH IN BANGLADESH: ISSUES AND CHALLENGES." 2020. Muhammad, Asad Ali. "IMPORT – EXPORT BUSINESS PLAN,Case: Kenko Oy." 2014. OLHA PYROH, MARYNA PROKOPENKO, LIANA CHERNOBAY, ROMAN KOVALENKOYULIIA PAPIZH, YEVHENIIA SYTA ,. "Management of Business Processes and Export-Import Activity of Industrial Enterprises in the Digital Economy." Monographic (2021). Osmani, S. R. "ACHIEVEMENTS AND CHALLENGES OF THE BANGLADESH ECONOMY: AN OVERVIEW." n.d. Prabir De, Selim Raihan, and Sanjay Kathuria. "Unlocking Bangladesh-India Trade: Emerging Potential and the Way Forward." Policy Research Working Paper (2012). Professor Dr. Engr. Ayub Nabi Khan, Md. Rashed Ullah. "Export Scenario Between Bangladesh and China: Opportunities of Bangladesh in RMG Sector." 13 (2017). . Rahman, Debapriya Bhattacharya and Mustafizur. "Female employment under export-propelled industrialization: Prospects for internalizing global opportunities in Bangladesh's apparel sector." 1999. Rahman, Md. Mahbubur. "Textile Export Nexus in Bangladesh: An Econometric Exploration." (2023). Rakib, Md. Abdur. "Export Trend of the Leather Industry of Bangladesh: Challenges to Sustainable Development." BUFT Journal of Business & Economics (BJBE) 1 (2020): 163-187. Rangsungnoen, Grid. "Aninvestigation of mediating factors for export–import business performance excellence: a systems perspective framework for Thailand." The TQM Journal (2023): 1588-1608. Razzaque, Mohammad A. "Revitalising Bangladesh’s Export Trade: Policy Issues for Growth Acceleration and Diversification ." 2017. Selim Raihan, Francois Bourguignon. Bangladesh’s Development: Achievements and Challenges . 2020. Additional Declarations No competing interests reported. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-6913262","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Article","associatedPublications":[],"authors":[{"id":472487932,"identity":"2555c7f6-4f38-401e-901d-007497045ece","order_by":0,"name":"Sarmin Akter","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA90lEQVRIiWNgGAWjYLCCBDDJ2P77T4UNiNF4gFgtDRI8Z9LADMJaYECCt+UwmIFXi3z72acbHu6ok9eddrjBQLLhvN3a9sNAW2psonFpMTiTbnYj8cxhw223ExsSDHfcTt52JhGo5VhabgMuLQxpbDcS2w4wgrQcSDxzO9nsAJDB2HAYpxb5/mcgLXX2QC2NDQfbziWbnX+IXwvDDbAtzIlALc2MjW0H7IDuxK/F4AbYlsPJQC1tzAxnkhPMbgBtScDjF/n+NLabP9vqbLfdTn/GzFBhZ292Pv3hgw81Nrgdhg4SwSoTiFUOAvakKB4Fo2AUjIKRAQC7YG2QkkOlbwAAAABJRU5ErkJggg==","orcid":"","institution":"Government of Commerce College, National University of Bangladesh","correspondingAuthor":true,"prefix":"","firstName":"Sarmin","middleName":"","lastName":"Akter","suffix":""},{"id":472487933,"identity":"9ac92acc-5be6-4877-a29c-e5803b31f885","order_by":1,"name":"Nashid Al Mahadi","email":"","orcid":"","institution":"University of Chittagong","correspondingAuthor":false,"prefix":"","firstName":"Nashid","middleName":"Al","lastName":"Mahadi","suffix":""},{"id":472487934,"identity":"46bdf591-763e-41c7-84fe-ef167ecc73e0","order_by":2,"name":"Nusrat Shammy","email":"","orcid":"","institution":"Eden Mohilla College, Dhaka","correspondingAuthor":false,"prefix":"","firstName":"Nusrat","middleName":"","lastName":"Shammy","suffix":""}],"badges":[],"createdAt":"2025-06-17 10:23:20","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-6913262/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-6913262/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":84852124,"identity":"71c68059-fd5f-4020-96f1-ac5a8d7f731c","added_by":"auto","created_at":"2025-06-18 04:52:39","extension":"png","order_by":1,"title":"Figure 1","display":"","copyAsset":false,"role":"figure","size":56032,"visible":true,"origin":"","legend":"\u003cp\u003eService Export Growth in Import-Linked Sectors (2013–2023)\u003cbr\u003e\n\u003cem\u003eSource: Author’s visualization based on Bangladesh Bank, EPB, and BBS data.\u003c/em\u003e\u003c/p\u003e","description":"","filename":"1.png","url":"https://assets-eu.researchsquare.com/files/rs-6913262/v1/bf1a10f84680b4fd9742cf42.png"},{"id":84852120,"identity":"97f8ad9c-d11b-4968-9f36-d8858318efd2","added_by":"auto","created_at":"2025-06-18 04:52:39","extension":"png","order_by":2,"title":"Figure 2","display":"","copyAsset":false,"role":"figure","size":41215,"visible":true,"origin":"","legend":"\u003cp\u003eDistribution of Service Types Among Export-Oriented Firms\u003c/p\u003e\n\u003cp\u003e\u003cem\u003eSource: Author’s SPSS output from structured field survey.\u003c/em\u003e\u003c/p\u003e","description":"","filename":"2.png","url":"https://assets-eu.researchsquare.com/files/rs-6913262/v1/136c48635666b93b0ede2950.png"},{"id":84853254,"identity":"c964d218-87a7-495c-831c-b7088a386e07","added_by":"auto","created_at":"2025-06-18 05:08:39","extension":"png","order_by":3,"title":"Figure 3","display":"","copyAsset":false,"role":"figure","size":27802,"visible":true,"origin":"","legend":"\u003cp\u003ePercentage of Primary Export Destinations\u003c/p\u003e","description":"","filename":"3.png","url":"https://assets-eu.researchsquare.com/files/rs-6913262/v1/f45a654bb9a65649611518e7.png"},{"id":84852638,"identity":"f7beb79f-dafc-4b8d-b23d-6fdc5a34e5b7","added_by":"auto","created_at":"2025-06-18 05:00:39","extension":"png","order_by":4,"title":"Figure 4","display":"","copyAsset":false,"role":"figure","size":34913,"visible":true,"origin":"","legend":"\u003cp\u003ePercentage of Revenue Contribution from service Exports\u003c/p\u003e","description":"","filename":"4.png","url":"https://assets-eu.researchsquare.com/files/rs-6913262/v1/358e04db0cd0f0572a84b9ce.png"},{"id":84852637,"identity":"9202dbab-7fe4-466e-827d-57850a92b5b3","added_by":"auto","created_at":"2025-06-18 05:00:39","extension":"png","order_by":5,"title":"Figure 5","display":"","copyAsset":false,"role":"figure","size":77003,"visible":true,"origin":"","legend":"\u003cp\u003eExport Market Preferences by Firm\u003c/p\u003e\n\u003cp\u003e\u003cem\u003eSource: SPSS output generated from structured field survey data.\u003c/em\u003e\u003c/p\u003e","description":"","filename":"5.png","url":"https://assets-eu.researchsquare.com/files/rs-6913262/v1/1f29c41f0ebdc46190aabf66.png"},{"id":102964691,"identity":"ff99b0f6-9b00-49b0-b922-2a85d65bb549","added_by":"auto","created_at":"2026-02-19 04:23:26","extension":"pdf","order_by":0,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":1756460,"visible":true,"origin":"","legend":"","description":"","filename":"manuscript.pdf","url":"https://assets-eu.researchsquare.com/files/rs-6913262/v1/8623a3e0-d431-45aa-bbf3-295afbb04bd7.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"\u003cp\u003eExporting Intangibles and the Import Export Nexus in Bangladesh\u003c/p\u003e","fulltext":[{"header":"1. Introduction","content":"\u003cp\u003eIn an era of global economic realignment and digital transformation, the boundaries between goods and services in international trade are increasingly blurred. Service-oriented activities\u0026mdash;such as logistics, compliance, trade finance, and ICT\u0026mdash;are no longer auxiliary support systems but have emerged as independent economic engines. For developing countries, particularly those with manufacturing-heavy export models, identifying and leveraging service components embedded within traditional trade flows is becoming critical for sustainable competitiveness. Bangladesh stands at a pivotal juncture in this evolution. The country is transitioning from Least Developed Country (LDC) status by 2026, and in doing so, it must reconsider the full spectrum of assets that contribute to its trade economy. Among the most overlooked of these assets are embedded services linked to the import-export interface. This study addresses the urgency and opportunity of recognizing and scaling these services as formal export products.\u003c/p\u003e \u003cp\u003eOver the last four decades, Bangladesh has transformed from an agrarian economy to one increasingly dependent on manufacturing and trade. This transformation is most visible in the rapid growth of the ready-made garments (RMG) sector, which has become the cornerstone of the nation\u0026rsquo;s industrialization. As of FY 2022\u0026ndash;23, RMG exports exceeded \u003cspan\u003e$\u003c/span\u003e46.99\u0026nbsp;billion, accounting for more than 84% of the country\u0026rsquo;s total export earnings (BGMEA, 2023). The sector plays a vital role in GDP growth, female employment, and foreign currency reserves. However, this manufacturing dominance masks a deeper transformation: the rise of service activities that facilitate the production and movement of these goods. Services such as freight forwarding, customs processing, trade documentation, L/C-based financing, regulatory compliance, and digital monitoring systems are integral to the efficiency and success of Bangladesh\u0026rsquo;s export operations. Though these services originate within the import system\u0026mdash;supporting the inbound flow of raw materials and capital goods\u0026mdash;they increasingly contribute to the export process either as value-added components bundled with products or as independently traded offerings. Globally, the trade in services has grown faster than trade in goods over the past decade, especially in developing economies integrating into regional and global value chains. The WTO and UNCTAD have emphasized that services such as logistics, ICT, and finance enhance productivity, diversify trade portfolios, and build resilience against market shocks. Yet, these categories often remain underreported or misunderstood within national policy frameworks. This mismatch is particularly acute in Bangladesh, where services embedded in import processes are rarely recognized as export drivers.\u003c/p\u003e \u003cp\u003eDespite their growing economic contribution, embedded services in Bangladesh are largely excluded from formal export classifications, incentive frameworks, and strategic planning instruments. Current trade policies focus on tangible products and broad service categories like IT-enabled services (ITES) or business process outsourcing (BPO). Consequently, services that are functionally internationalized\u0026mdash;such as digital customs platforms, regional logistics networks, and compliance software\u0026mdash;remain invisible in trade statistics and unsupported by institutional mechanisms. This lack of recognition results in missed opportunities for revenue generation, technological innovation, and job creation. Moreover, this invisibility has policy implications. Firms offering these services are unable to access export-related tax benefits, foreign currency retention facilities, or government-backed credit schemes. They also face regulatory ambiguity regarding whether and how they can qualify as \u0026ldquo;exporters.\u0026rdquo; This regulatory gap not only stifles firm-level innovation but also limits Bangladesh\u0026rsquo;s macroeconomic adaptability as it prepares for a more competitive post-LDC future.\u003c/p\u003e \u003cp\u003eAlthough Bangladesh\u0026rsquo;s RMG sector and broader trade dynamics have been studied extensively, there is a notable lack of research on the specific subset of services that emerge from, and are embedded in, the import-export nexus. Existing literature typically focuses on large-scale export sectors or standalone service industries like fintech and e-commerce. Rarely do academic or policy studies explore how import-supportive services\u0026mdash;logistics operations, customs digitization, trade finance instruments, or compliance ecosystems\u0026mdash;evolve into exportable assets. This gap leaves policymakers with an incomplete understanding of Bangladesh\u0026rsquo;s full trade capacity and limits the ability to design holistic, future-oriented trade policies.\u003c/p\u003e \u003cp\u003ePreliminary analysis from this study reveals that from 2013 to 2023, embedded service exports grew from USD 3.6\u0026nbsp;billion to USD 8.9\u0026nbsp;billion, registering a compound annual growth rate (CAGR) of 8.4%. Sectoral data indicates that ICT services accounted for 28% of the total by 2023, followed by logistics and trade finance services. Firms with high digital readiness\u0026mdash;those offering real-time tracking, automated documentation, API-enabled software, or cloud-based compliance platforms\u0026mdash;tend to perform better in export markets. Notably, more than 40% of the surveyed firms earn the majority of their revenue from these service exports, indicating their transition from ancillary operations to core business models. Geographically, these services are being exported to South Asia (43.3%), Southeast Asia (30%), and the Middle East and Africa (26.7%). Key regional partners include India, Nepal, Myanmar, and Gulf countries, where demand for scalable digital logistics, customs automation, and fintech platforms is increasing. However, regional interoperability challenges\u0026mdash;such as inconsistent trade protocols and digital system incompatibility\u0026mdash;remain significant barriers.\u003c/p\u003e \u003cp\u003eBangladesh\u0026rsquo;s institutional landscape has made notable progress in digitization, innovation, and investment facilitation. Initiatives like Startup Bangladesh and the a2i programme have contributed to the growth of ICT-based service models. The Bangladesh Investment Development Authority (BIDA) has streamlined business registration through online one-stop services. Bangladesh Bank\u0026rsquo;s Export Development Fund (EDF) and digital processing of back-to-back L/Cs have reduced transaction times and improved compliance. Despite these advances, national trade strategy documents\u0026mdash;including the National Export Strategy (NES), the ICT Policy, and the Logistics Master Plan\u0026mdash;do not explicitly classify or incentivize embedded services. The Bangladesh Bureau of Statistics (BBS) and Bangladesh Bank continue to categorize service flows using broad aggregates, with no clear metrics for embedded or hybrid services. This lack of granularity impedes evidence-based policy and limits access to global service trade reporting frameworks such as the Extended Balance of Payments Services Classification (EBOPS).\u003c/p\u003e \u003cp\u003eThis study seeks to bridge the analytical and institutional gaps in understanding embedded service exports in Bangladesh. Specifically, it aims to:\u003c/p\u003e \u003cp\u003eIdentify and define the types of services that originate from the import sector but are exported independently or as part of value chains.\u003c/p\u003e \u003cp\u003eAssess their economic significance through trend data, firm-level revenue shares, and regional market integration.\u003c/p\u003e \u003cp\u003eAnalyze the regulatory, statistical, and institutional barriers that hinder their recognition and support.\u003c/p\u003e \u003cp\u003eExplore the technological and infrastructural enablers\u0026mdash;such as digital platforms and logistics modernization\u0026mdash;that facilitate their internationalization.\u003c/p\u003e \u003cp\u003eRecommend policy adjustments and classification reforms to incorporate these services into national export strategy.\u003c/p\u003e \u003cp\u003eThe overarching aim of this study is to reconceptualize Bangladesh\u0026rsquo;s trade capacity by spotlighting the overlooked yet rapidly growing domain of embedded service exports. By examining the intersection between import facilitation and service internationalization, the study proposes a broader and more inclusive framework for understanding export competitiveness in the 21st century. This approach is particularly significant as Bangladesh prepares to exit the LDC category and embrace a more self-reliant, diversified, and technology-enabled trade model.\u003c/p\u003e \u003cp\u003eFormally recognizing and supporting embedded services can unlock multiple benefits: increased export earnings, enhanced digital capabilities, greater regional integration, and reduced vulnerability to external shocks. As global trade becomes more service-intensive and digitized, the ability of countries like Bangladesh to measure, incentivize, and promote embedded services will be a key determinant of long-term economic resilience and global relevance.\u003c/p\u003e"},{"header":"2 Literature Review","content":"\u003cp\u003eBangladesh\u0026rsquo;s export economy, long anchored in the ready-made garments (RMG) sector, is undergoing a multidimensional transformation driven by the convergence of emergent services, digital innovation, and socio-economic imperatives. A comprehensive survey of the academic and policy literature reveals a layered narrative of growth, resilience, and vulnerability that maps both sectoral strengths and systemic constraints. The RMG sector remains the bedrock of Bangladesh\u0026rsquo;s export architecture, contributing substantially to GDP, foreign exchange earnings, and, critically, female employment.\u003cb\u003e(Md. Sajib Hossain)\u003c/b\u003e emphasize the global expansion of RMG exports, catalyzed by geographical diversification strategies and cost competitiveness. However, persistent inefficiencies\u0026mdash;such as infrastructural deficits, labor productivity issues, and prolonged lead times\u0026mdash;continue to erode competitiveness.\u003cb\u003e(Islam)\u003c/b\u003e and\u003cb\u003e(Professor Dr. Engr. Ayub Nabi Khan)\u003c/b\u003e highlight the sector\u0026rsquo;s embedded socio-institutional challenges, including labor rights violations, workplace safety lapses, and environmental degradation, despite improvements in gender parity and job creation. These challenges underscore the need for corporate accountability, robust regulatory frameworks, and adherence to international labor and environmental standards.\u003cb\u003e(Rakib)\u003c/b\u003e and insights from\u003cb\u003e(MIAN)\u003c/b\u003e further contextualize these issues within a broader structural inertia\u0026mdash;marked by excessive reliance on low-cost labor, limited industrial upgrading, and weak innovation capacity. The literature consistently advocates for modernization, value addition, and workforce skill enhancement to meet evolving global compliance benchmarks and consumer expectations. In response to the fragility of mono-sectoral export reliance, a growing body of research urges strategic industrial diversification. \u003cb\u003e(Razzaque)\u003c/b\u003e calls for a recalibration of policy incentives to nurture alternative sectors beyond garments.\u003cb\u003e(Prabir De)\u003c/b\u003e shift the discourse to IT-enabled services and logistics, positing these as high-potential growth sectors contingent on regulatory alignment and digital infrastructure enhancement. In parallel,\u003cb\u003e(Florido-Ben\u0026iacute;tez)\u003c/b\u003e underscores the rise of e-commerce as a transformative force, advocating for inclusive digital frameworks to integrate marginalized actors and ensure equitable access to global markets. Complementing these perspectives is a growing recognition of the role of service-sector integration in export expansion.\u003cb\u003e(Habib)\u003c/b\u003e identifies the financial sector as pivotal in enabling export operations, emphasizing trade finance, institutional modernization, and systemic efficiency as central concerns.\u003cb\u003e(Areej Aftab Siddiqui)\u003c/b\u003e expands on this by linking logistics infrastructure\u0026mdash;especially transport and port management\u0026mdash;to overall export performance. These infrastructural limitations not only constrain supply chain efficiency but also blunt the potential productivity gains achieved in manufacturing. Inadequate service linkages thus remain a critical gap in Bangladesh\u0026rsquo;s export ecosystem, necessitating investments in multimodal logistics, digital payment systems, and trade facilitation mechanisms. The literature also brings into focus the role of trade policy and institutional reform in shaping export trajectories. The Bangladesh Tariff Commission \u003cb\u003e(Bellal Hussain Molla)\u003c/b\u003ecritiques the distortive effects of the current tariff regime and advocates for rationalized tariff structures to promote industrial competitiveness. Extend this argument through a regional lens, emphasizing the benefits of deeper trade integration with India and neighboring economies. Such harmonization, they argue, could unleash latent synergies, reduce transaction costs, and enhance market access. \u003cb\u003e(M.A)\u003c/b\u003e positions these debates within a broader geopolitical context, identifying both strategic opportunities and institutional vulnerabilities associated with South Asian trade. Meanwhile,\u003cb\u003e(Chowdhury)\u003c/b\u003e calls for proactive market diversification beyond the European Union and United States, warning against overdependence on a narrow set of export destinations and urging the development of resilience against global demand volatility. A parallel theme in the literature is the centrality of social sustainability, labor rights, and inclusive development to the export agenda.\u003cb\u003e(ADDRESSING CHILD LABOUR IN THE BANGLADESH GARMENT INDUSTRY 1995\u0026ndash;2001 ) and(BGMEA)\u003c/b\u003e document significant progress in labor standards\u0026mdash;particularly the elimination of child labor and improvements in environmental compliance\u0026mdash;fueled by international partnerships and targeted donor support. Yet these gains are uneven.\u003cb\u003e(Selim Raihan)\u003c/b\u003e and\u003cb\u003e(MAHMUD)\u003c/b\u003e expose lingering vulnerabilities, including job insecurity, stagnant wages, and fragmented labor protections. The UNRISD report\u003cb\u003e(Rahman)\u003c/b\u003e situates these concerns within the broader framework of sustainable industrial policy, arguing that equitable labor systems are not only ethically essential but economically prudent for long-term competitiveness.\u003cb\u003e(Osmani)\u003c/b\u003e adopts a historical lens to reflect on Bangladesh\u0026rsquo;s post-independence development, recognizing progress in health and education but cautioning against growing income inequality, regional disparities, and emerging trade imbalances. These structural issues demand policy coherence across industrial, labor, and social sectors to ensure that export-led growth does not exacerbate exclusion or inequality. The digital transformation of Bangladesh\u0026rsquo;s export apparatus is another critical axis of analysis.\u003cb\u003e(OLHA PYROH) and(Muhammad)\u003c/b\u003e highlight the increasing integration of digital tools in trade management, particularly in customs, documentation, and logistics. These innovations enhance process adaptability and transparency, reduce transaction costs, and support more responsive risk management systems.\u003cb\u003e(Keya) and(Abdullah Junayed)\u003c/b\u003e argue for a decisive transition towards technology-intensive manufacturing, which would not only diversify the export basket but also increase value chain resilience amid global disruptions.\u003cb\u003e(Rangsungnoen)\u003c/b\u003e introduces systems-based performance frameworks that offer granular metrics for assessing export process efficiency, while\u003cb\u003e(ALFAHD)\u003c/b\u003e provides micro-level case studies illustrating how small enterprises confront and navigate regulatory and logistical barriers. These operational insights ground the broader theoretical arguments in the lived realities of exporters and point to actionable areas for policy and technical support. At a macroeconomic level,\u003cb\u003e(M. M. Rahman)\u003c/b\u003e introduces econometric evidence linking export performance to variables such as exchange rate volatility, inflation, and global demand cycles. His findings underscore the necessity of maintaining macroeconomic stability to preserve competitiveness.\u003cb\u003e(Helal Uddin)\u003c/b\u003e reinforces this by tracing causal relationships between trade activity and economic growth across low-income countries, emphasizing the catalytic potential of exports when embedded within a stable policy environment. This macroeconomic framing provides an essential backdrop to sectoral analyses, suggesting that without fiscal prudence, monetary stability, and coherent industrial policy, micro-level reforms may yield suboptimal outcomes. Taken together, these thematic strands coalesce into a compelling narrative that situates Bangladesh\u0026rsquo;s export economy at a critical juncture. The literature reviewed herein converges on the thesis that sustainable export growth is not merely a function of sectoral performance or market dynamics but a holistic interplay of structural reform, institutional capability, social equity, and technological adaptation. Policy recommendations emerging from this body of work are both immediate and long-term. In the short term, targeted investments in logistics, digital trade facilitation, and financial services could unlock existing bottlenecks. Over the medium term, institutional reforms\u0026mdash;in tariff rationalization, compliance enforcement, and regional trade agreements\u0026mdash;are necessary to realign incentives and foster integration. In the long term, embedding inclusive labor practices, gender equity, and environmental stewardship into the national export strategy will be crucial for ensuring that economic gains translate into social progress. The trajectory ahead requires a recalibration of Bangladesh\u0026rsquo;s development model\u0026mdash;from one driven by low-cost labor and preferential market access to a strategy grounded in innovation, resilience, and inclusivity. As Bangladesh prepares to graduate from Least Developed Country (LDC) status, the imperative for such a comprehensive and forward-looking export strategy becomes even more urgent. The literature makes it clear that the future of Bangladesh\u0026rsquo;s export competitiveness lies in its ability to reconcile growth with governance, technology with tradition, and global integration with local inclusion. By navigating these complex intersections, Bangladesh can transform its export economy into a robust engine for equitable and sustainable development.\u003c/p\u003e"},{"header":"3 Methodology","content":"\u003cp\u003eThis research adopts a qualitative methodological orientation, complemented by descriptive trend analysis, to comprehensively investigate the characteristics, operational dynamics, and policy frameworks surrounding the internationalization of embedded service exports emerging from Bangladesh\u0026rsquo;s import sector. Given the nascent and under-theorized nature of this research domain\u0026mdash;compounded by the limited availability of disaggregated, sector-specific data\u0026mdash;this study employs a mixed-methods approach grounded in interpretive inquiry. Such an approach is deemed appropriate for capturing both measurable trade patterns and the nuanced, experience-based insights of actors operating within the broader import-export ecosystem.\u003c/p\u003e \u003cdiv id=\"Sec4\" class=\"Section2\"\u003e \u003ch2\u003e3.1 Research Design and Justification\u003c/h2\u003e \u003cp\u003eA qualitative exploratory design forms the methodological foundation of this study. This design is particularly suited to uncovering the complex, layered processes involved in service delivery within trade environments, especially in contexts where such services are systematically underrepresented in national economic statistics and policy instruments.\u003c/p\u003e \u003cp\u003eThe justification for this research design is twofold. First, the nature of embedded services\u0026mdash;such as customs clearance, logistics coordination, trade finance facilitation, and digital platform integration\u0026mdash;renders them inherently difficult to isolate within traditional statistical frameworks. These services are typically nested within broader operational processes, often treated as inputs rather than discrete economic outputs. Second, unpacking the institutional, regulatory, and business-level dynamics that drive the evolution and exportability of such services necessitates direct engagement with stakeholders situated at multiple levels of the value chain. These include policymakers, regulators, fintech developers, customs officials, and logistics providers.\u003c/p\u003e \u003cp\u003eAccordingly, the research design is structured around triangulation of multiple data sources\u0026mdash;documentary evidence, expert interviews, and field-level surveys\u0026mdash;to ensure analytical depth and contextual accuracy.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec5\" class=\"Section2\"\u003e \u003ch2\u003e3.2 Data Sources and Collection Techniques\u003c/h2\u003e \u003cdiv id=\"Sec6\" class=\"Section3\"\u003e \u003ch2\u003e3.2.1 Secondary Data\u003c/h2\u003e \u003cp\u003eSecondary data were collected from a diverse array of authoritative national and international sources spanning the period 2015 to 2024. These data sources were selected for their institutional credibility, relevance to the topic, and capacity to provide longitudinal insights into trade flows, policy evolution, and sectoral performance. Key sources include:\u003c/p\u003e \u003cp\u003e \u003cstrong\u003eBangladesh Bank (BB)\u003c/strong\u003e \u003cp\u003eData on trade finance mechanisms, utilization of the Export Development Fund (EDF), trends in Letters of Credit (L/Cs), and services-related statistics derived from balance of payments accounts.\u003c/p\u003e \u003c/p\u003e \u003cp\u003e \u003cstrong\u003eExport Promotion Bureau (EPB)\u003c/strong\u003e \u003cp\u003eAnnual and monthly statistical releases concerning service export revenues, disaggregated where available by sector and destination.\u003c/p\u003e \u003c/p\u003e \u003cp\u003e \u003cstrong\u003eBangladesh Bureau of Statistics (BBS)\u003c/strong\u003e \u003cp\u003eSector-specific contributions to GDP, employment trends in service industries, and time-series data related to trade and business services.\u003c/p\u003e \u003c/p\u003e \u003cp\u003e \u003cstrong\u003eInternational Organizations\u003c/strong\u003e \u003cp\u003eReports and datasets from the World Trade Organization (WTO), United Nations Conference on Trade and Development (UNCTAD), World Bank, and International Trade Centre (ITC), focusing particularly on global services trade benchmarks, logistics performance indicators, and digital infrastructure assessments related to Bangladesh.\u003c/p\u003e \u003c/p\u003e \u003cp\u003e \u003cstrong\u003eNational Policy Documents\u003c/strong\u003e \u003cp\u003eStrategic policy instruments such as the National Export Policy, ICT Policy, Logistics Sector Master Plan, BBIN Connectivity Framework, and the National Export Strategy (NES) were examined to assess the extent to which embedded service exports are addressed\u0026mdash;or overlooked\u0026mdash;within official trade planning.\u003c/p\u003e \u003c/p\u003e \u003cp\u003eTogether, these secondary sources facilitated the identification of structural patterns, institutional dynamics, and the evolutionary trajectory of service export capabilities within import-linked operations.\u003c/p\u003e \u003c/div\u003e \u003c/div\u003e \u003cdiv id=\"Sec7\" class=\"Section2\"\u003e \u003ch2\u003e3.2 Primary Data\u003c/h2\u003e \u003cp\u003ePrimary data were collected using two interrelated qualitative methods: semi-structured expert interviews and a structured field-level survey.\u003c/p\u003e \u003cp\u003e \u003cb\u003eSemi-Structured Interviews (n\u0026thinsp;=\u0026thinsp;8)\u003c/b\u003e:\u003c/p\u003e \u003cp\u003eParticipants for the interviews were purposively selected based on their strategic positions in key institutions such as Bangladesh Bank, the Export Promotion Bureau, the customs department, fintech companies, logistics firms, and IT exporters. The objective of the interviews was to elicit rich, experience-based insights into:\u003c/p\u003e \u003cp\u003eOperational workflows and service delivery models;\u003c/p\u003e \u003cp\u003ePathways through which import-related services are being internationalized;\u003c/p\u003e \u003cp\u003eBarriers to formal export classification;\u003c/p\u003e \u003cp\u003ePerceptions of existing policy support (or lack thereof).\u003c/p\u003e \u003cp\u003eFour interviews were conducted in person\u0026mdash;split between Dhaka and Chattogram\u0026mdash;while the remaining four were administered virtually using Zoom and Google Meet platforms. Each session lasted between 30 and 45 minutes. Verbal informed consent was obtained prior to each interview, and rigorous anonymization procedures were adhered to, ensuring compliance with established ethical research protocols.\u003c/p\u003e \u003cp\u003e \u003cb\u003eField Survey (n\u0026thinsp;=\u0026thinsp;30)\u003c/b\u003e:\u003c/p\u003e \u003cp\u003eIn parallel, a structured questionnaire was disseminated via Google Forms to professionals engaged in:\u003c/p\u003e \u003cp\u003eFreight forwarding and logistics management;\u003c/p\u003e \u003cp\u003eSoftware development tailored for trade and customs applications;\u003c/p\u003e \u003cp\u003eConsultancy services related to customs and regulatory compliance;\u003c/p\u003e \u003cp\u003eFintech platforms supporting digital L/Cs and trade finance solutions.\u003c/p\u003e \u003cp\u003eParticipants were identified through purposive sampling, drawing on professional networks from the Bangladesh Association of Software and Information Services (BASIS), the logistics wings of BGMEA, and curated trade-related directories. The survey instrument collected both quantitative and qualitative data regarding:\u003c/p\u003e \u003cp\u003eTypes of services offered;\u003c/p\u003e \u003cp\u003eRevenue dependence on export markets;\u003c/p\u003e \u003cp\u003eGeographic reach and target markets;\u003c/p\u003e \u003cp\u003eConstraints faced in internationalization and scalability;\u003c/p\u003e \u003cp\u003eInstitutional support and regulatory clarity.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec8\" class=\"Section2\"\u003e \u003ch2\u003e3.3 Data Analysis Procedures\u003c/h2\u003e \u003cp\u003eData were subjected to two primary forms of analysis\u0026mdash;descriptive trend analysis and thematic content analysis\u0026mdash;ensuring a balanced methodological approach that integrates both numeric indicators and narrative insights.\u003c/p\u003e \u003cp\u003e \u003cb\u003eDescriptive Trend Analysis\u003c/b\u003e:\u003c/p\u003e \u003cp\u003eQuantitative data from secondary sources were processed using Microsoft Excel to construct visual and statistical representations of:\u003c/p\u003e \u003cp\u003eLongitudinal service export growth (2013\u0026ndash;2024);\u003c/p\u003e \u003cp\u003eSectoral disaggregation by type (logistics, ICT, trade finance);\u003c/p\u003e \u003cp\u003eGeographic patterns of service exports, especially toward BBIN and ASEAN regions.\u003c/p\u003e \u003cp\u003eThis trend analysis allowed for the identification of temporal shifts and structural patterns that support the central thesis of embedded service export growth.\u003c/p\u003e \u003cp\u003e \u003cb\u003eThematic Content Analysis\u003c/b\u003e:\u003c/p\u003e \u003cp\u003eTranscribed interview data were analyzed using NVivo 12 through an inductive coding process. Recurring themes were identified and grouped into clusters, including:\u003c/p\u003e \u003cp\u003e \u003cem\u003eRegulatory Gaps\u003c/em\u003e \u0026mdash; highlighting inconsistencies and absence of classification in official policy;\u003c/p\u003e \u003cp\u003e \u003cem\u003eTechnology Adaptation\u003c/em\u003e \u0026mdash; emphasizing the role of digital tools in service scalability;\u003c/p\u003e \u003cp\u003e \u003cem\u003eRegional Opportunity\u003c/em\u003e \u0026mdash; exploring market expansion into South and Southeast Asia;\u003c/p\u003e \u003cp\u003e \u003cem\u003eVisibility Barriers\u003c/em\u003e \u0026mdash; referring to institutional and statistical invisibility;\u003c/p\u003e \u003cp\u003e \u003cem\u003ePolicy Disconnect\u003c/em\u003e \u0026mdash; pointing to the misalignment between operational realities and export incentives.\u003c/p\u003e \u003cp\u003eThis method facilitated the construction of a grounded theoretical narrative that connects firm-level operations to national policy structures.\u003c/p\u003e \u003cp\u003e \u003cb\u003eTriangulation Strategy\u003c/b\u003e:\u003c/p\u003e \u003cp\u003eTo ensure robustness and mitigate bias, triangulation was employed across multiple dimensions:\u003c/p\u003e \u003cp\u003e \u003cem\u003eSource Triangulation\u003c/em\u003e\u0026mdash;cross-validating information from statistical records, interviews, and surveys;\u003c/p\u003e \u003cp\u003e \u003cem\u003eRespondent Triangulation\u003c/em\u003e\u0026mdash;ensuring coverage from both public-sector regulators and private-sector implementers;\u003c/p\u003e \u003cp\u003e \u003cem\u003eTheoretical Triangulation\u003c/em\u003e\u0026mdash;analyzing patterns through both economic and institutional lenses.\u003c/p\u003e \u003cp\u003eWhere discrepancies arose between official narratives and practitioner experiences, these were critically examined to reveal gaps in recognition, support, or measurement.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec9\" class=\"Section2\"\u003e \u003ch2\u003e3.4 Validity, Reliability, and Research Limitations\u003c/h2\u003e \u003cp\u003eSeveral steps were undertaken to ensure the validity and reliability of this study:\u003c/p\u003e \u003cp\u003eA pilot version of the survey was tested with three professionals to assess clarity, interpretability, and contextual relevance.\u003c/p\u003e \u003cp\u003e Two independent academic peers reviewed the emerging codes and interpretations during the thematic analysis to provide external validation and reduce interpretive bias.\u003c/p\u003e \u003cp\u003eTriangulation of methods and sources served as a further safeguard against subjectivity.\u003c/p\u003e \u003cp\u003eNonetheless, certain limitations are acknowledged:\u003c/p\u003e \u003cp\u003eThe unavailability of disaggregated national data on embedded service exports restricted the scope of quantitative depth.\u003c/p\u003e \u003cp\u003eConfidentiality concerns led some respondents to withhold sensitive information, especially regarding financial operations or client networks.\u003c/p\u003e \u003cp\u003eAs with most qualitative research, generalizability is limited. However, the findings offer high analytical value for similar trade ecosystems in emerging economies.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec10\" class=\"Section2\"\u003e \u003ch2\u003e3.5 Ethical Compliance\u003c/h2\u003e \u003cp\u003e This study was conducted in full adherence to international ethical standards for social science research. All participation was voluntary, and informed consent\u0026mdash;verbal in format\u0026mdash;was secured from every respondent. No personally identifiable information was recorded, stored, or disclosed. Given the non-sensitive and professional nature of the data, and in accordance with local academic practice, formal Institutional Review Board (IRB) clearance was not required.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec11\" class=\"Section2\"\u003e \u003ch2\u003e3.6 Conceptual Framework\u003c/h2\u003e \u003cp\u003eThis study is conceptually grounded in the notion of \u003cb\u003eembedded service exports\u003c/b\u003e\u0026mdash;defined as services that originate within import-dependent processes but acquire independent value as exportable offerings. Examples include digital L/C platforms developed for importers but now marketed to foreign banks, or logistics systems initially created for domestic factory use but now deployed in regional trade corridors.\u003c/p\u003e \u003cp\u003eThis framework enables a reinterpretation of traditional trade flows and challenges the binary separation between goods and services, as well as between import and export activities. It underscores the potential for non-traditional, service-driven sectors to become pivotal in export growth, especially when supported by enabling institutions, digital transformation, and forward-looking trade policy.\u003c/p\u003e \u003c/div\u003e"},{"header":"4 Results and Discussions","content":"\u003cp\u003eThis section presents the findings derived from secondary data analysis, survey data processed using SPSS (Version 26), and qualitative insights from semi-structured interviews. The results are structured into three parts: (1) Descriptive trend analysis of service exports linked to the import sector; (2) Survey-based findings analyzed through descriptive and inferential statistics; and (3) Thematic insights based on interview data.\u003c/p\u003e \u003cdiv id=\"Sec13\" class=\"Section2\"\u003e \u003ch2\u003e4.1 Descriptive Trend Analysis of Service Exports (2013\u0026ndash;2024)\u003c/h2\u003e \u003cp\u003e \u003c/p\u003e \u003cp\u003e \u003cem\u003eSource: Author\u0026rsquo;s visualization based on Bangladesh Bank, EPB, and BBS data.\u003c/em\u003e \u003c/p\u003e \u003cp\u003eFrom Figure-1 Data from Bangladesh Bank, EPB, and BBS reveal a steady upward trend in service exports associated with import-linked sectors, particularly in logistics, trade finance, and ICT. Service exports grew from USD 3.6\u0026nbsp;billion in 2013 to USD 8.9\u0026nbsp;billion in 2023, reflecting a compound annual growth rate (CAGR) of approximately 8.4%. Sectoral contributions indicate that ICT services accounted for 28% of the total by 2023, driven by the expansion of software and digital platform services. Logistics and freight forwarding contributed 22%, with notable acceleration post-2020 due to regional supply chain restructuring. Trade finance and fintech services represented 12%, primarily driven by the adoption of electronic L/C platforms and remittance facilitation tools. Geographically, BBIN countries (Bhutan, Bangladesh, India, Nepal) emerged as key regional recipients of these services, while ASEAN markets demonstrated modest integration growth. These findings suggest a latent export potential within import-aligned services, especially in contexts where digital transformation, regulatory modernization, and regional trade corridors are simultaneously evolving.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec14\" class=\"Section2\"\u003e \u003ch2\u003e4.2 Survey Findings (n\u0026thinsp;=\u0026thinsp;30): SPSS Analysis\u003c/h2\u003e \u003cdiv id=\"Sec15\" class=\"Section3\"\u003e \u003ch2\u003e4.2.1 Descriptive Statistics\u003c/h2\u003e \u003cp\u003e \u003c/p\u003e \u003cp\u003e \u003cem\u003eSource: Author\u0026rsquo;s SPSS output from structured field survey.\u003c/em\u003e \u003c/p\u003e \u003cp\u003e \u003cb\u003eFrom Figure-2 Logistics and Freight Forwarding\u003c/b\u003e emerged as the most dominant service type, reported by 11 out of 30 respondents (36.7%). This confirms the growing role of logistics firms in providing exportable services linked to import activities. \u003cb\u003eTrade-Related Software Services\u003c/b\u003e followed, cited by 8 respondents (26.7%), reflecting the increasing role of digitization in cross-border trade facilitation. \u003cb\u003eCustoms Consultancy\u003c/b\u003e and \u003cb\u003eFintech Services\u003c/b\u003e were mentioned by 6 and 5 respondents, respectively. These include firms involved in customs automation, e-L/C platforms, and trade finance apps.\u003c/p\u003e \u003cp\u003e \u003c/p\u003e \u003cp\u003eThis pie chart (\u003cb\u003eFigure-3\u003c/b\u003e) illustrates the regional distribution of embedded service exports, based on survey data. The three key regions captured are:\u003c/p\u003e \u003cp\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003e \u003cb\u003eSouth Asia (43.3%)\u003c/b\u003e:\u003c/p\u003e \u003c/li\u003e \u003c/ul\u003e \u003c/p\u003e \u003cp\u003eSouth Asia accounts for the largest portion of the export market. This dominant share indicates a strong trade and service linkage between the surveyed firms and countries within South Asia\u0026mdash;possibly including India, Bangladesh, Sri Lanka, Nepal, and Pakistan. The prominence of South Asia could be attributed to geographical proximity, shared regulatory frameworks (such as SAARC agreements), growing demand for logistics and digital services, and favorable trade relations. This region may also offer cost-effective opportunities for business process outsourcing, IT-enabled services, and logistics technologies, all of which fall under the umbrella of embedded service exports.\u003c/p\u003e \u003cp\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003e \u003cb\u003eSoutheast Asia (30.0%)\u003c/b\u003e:\u003c/p\u003e \u003c/li\u003e \u003c/ul\u003e \u003c/p\u003e \u003cp\u003eSoutheast Asia is the second largest destination, highlighting a robust and growing demand from countries such as Indonesia, Vietnam, Thailand, Malaysia, and the Philippines. The Association of Southeast Asian Nations (ASEAN) economic integration and digital transformation efforts make this region attractive for service exports, particularly in areas like e-commerce logistics, fintech platforms, supply chain software, and smart customs solutions. The strong trade infrastructure and expanding consumer base in this region support sustained growth in service exports.\u003c/p\u003e \u003cp\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003e \u003cb\u003eMiddle East and Africa (26.7%)\u003c/b\u003e:\u003c/p\u003e \u003c/li\u003e \u003c/ul\u003e \u003c/p\u003e \u003cp\u003eThough the smallest among the three, the Middle East and Africa still represent a substantial market share. This region\u0026rsquo;s increasing investment in logistics modernization, smart port systems, and digital customs platforms has driven demand for advanced service exports. Countries such as the UAE, Saudi Arabia, Kenya, and Nigeria are leading the charge in digital transformation, making them prime export targets. Moreover, the region\u0026rsquo;s need for efficient cross-border trade systems, especially in landlocked and developing countries, enhances the appeal of embedded service solutions.\u003c/p\u003e \u003cp\u003e \u003cb\u003eRevenue Contribution from Service Exports\u003c/b\u003e:\u003c/p\u003e \u003cp\u003e \u003c/p\u003e \u003cp\u003eThis pie chart \u003cb\u003e(Figure-4)\u003c/b\u003e breaks down the extent to which service exports contribute to firm revenues, based on survey responses. It categorizes respondents into three groups depending on the proportion of their revenue derived from exports:\u003c/p\u003e \u003cp\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003e \u003cb\u003eMore than 50% Revenue from Exports (40%)\u003c/b\u003e:\u003c/p\u003e \u003c/li\u003e \u003c/ul\u003e \u003c/p\u003e \u003cp\u003eA significant portion of respondents\u0026mdash;40%\u0026mdash;reported that exports now contribute over half of their total revenue. This is a strong indicator that embedded service exports are not only viable but are becoming a central pillar of business sustainability and growth. These firms likely have well-established international networks and offer highly scalable solutions in areas such as logistics technology, digital customs, and trade facilitation platforms. This figure reflects a mature integration of international markets into their business model.\u003c/p\u003e \u003cp\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003e \u003cb\u003e30\u0026ndash;50% Revenue from Exports (26.7%)\u003c/b\u003e:\u003c/p\u003e \u003c/li\u003e \u003c/ul\u003e \u003c/p\u003e \u003cp\u003eOver a quarter of respondents stated that export activities contribute between 30% and 50% of their revenue. This represents firms in a growth phase of export development\u0026mdash;possibly expanding into new regions, scaling their operations, or increasing their service portfolio. These companies might still be balancing between domestic and international markets but are evidently investing in export-oriented strategies.\u003c/p\u003e \u003cp\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003e \u003cb\u003eLess than 30% Revenue from Exports (33.3%) \u0026ndash; Implied\u003c/b\u003e:\u003c/p\u003e \u003c/li\u003e \u003c/ul\u003e \u003c/p\u003e \u003cp\u003eAlthough not explicitly reported in the original data, the remaining portion\u0026mdash;33.3%\u0026mdash;can logically be inferred to represent firms for whom exports contribute less than 30% of their revenue. These may include newer entrants to international markets or firms that primarily operate domestically but are exploring cross-border opportunities. The relatively smaller share of export-linked revenue suggests a potential area for growth, especially as global demand for embedded services continues to rise.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec16\" class=\"Section3\"\u003e \u003ch2\u003e4.2.2 Cross-tabulations and Inferential Insights\u003c/h2\u003e \u003cp\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003e \u003cb\u003eChi-Square Test\u003c/b\u003e: A significant association was found between \u003cb\u003efirm type\u003c/b\u003e (logistics, software, consultancy) and \u003cb\u003etarget export market\u003c/b\u003e (χ\u0026sup2;(6)\u0026thinsp;=\u0026thinsp;11.42, \u003cem\u003ep\u003c/em\u003e\u0026thinsp;\u0026lt;\u0026thinsp;0.05). Logistics firms were more likely to target BBIN countries, while software providers targeted ASEAN and MENA regions, which is shown below Figure-5;\u003c/p\u003e \u003c/li\u003e \u003c/ul\u003e \u003c/p\u003e \u003cp\u003e \u003c/p\u003e \u003cp\u003e \u003cem\u003eSource: SPSS output generated from structured field survey data.\u003c/em\u003e \u003c/p\u003e \u003cp\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003e \u003cb\u003eCorrelation Analysis\u003c/b\u003e: Pearson correlation revealed a positive relationship (\u003cem\u003er\u003c/em\u003e\u0026thinsp;=\u0026thinsp;0.48, \u003cem\u003ep\u003c/em\u003e\u0026thinsp;\u0026lt;\u0026thinsp;0.01) between firms\u0026rsquo; digital readiness and the share of revenue from export services, indicating that technology adoption enhances export performance.\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003e \u003cb\u003eBarriers to Growth\u003c/b\u003e:\u003c/p\u003e \u003cp\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003eRegulatory ambiguity (76.7%)\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eData classification issues (63.3%)\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eLack of policy incentives (56.7%)\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eInsufficient regional integration (46.7%)\u003c/p\u003e \u003c/li\u003e \u003c/ul\u003e \u003c/p\u003e \u003c/li\u003e \u003c/ul\u003e \u003c/p\u003e \u003cp\u003eThese findings underscore the need for tailored policy support, digital ecosystem strengthening, and regional service trade facilitation.\u003c/p\u003e \u003c/div\u003e \u003c/div\u003e \u003cdiv id=\"Sec17\" class=\"Section2\"\u003e \u003ch2\u003e4.3 Thematic Findings from Interviews\u003c/h2\u003e \u003cp\u003eThe eight expert interviews revealed five dominant themes relevant to the institutional and operational realities of service exports from the import sector:\u003c/p\u003e \u003c/div\u003e\n\u003ch3\u003e1. Regulatory Ambiguity and Service Classification Gap\u003c/h3\u003e\n\u003cp\u003eParticipants repeatedly emphasized the \u003cb\u003eabsence of clear classification\u003c/b\u003e for services embedded within import functions, such as customs facilitation or supply chain analytics. This hampers recognition in official export records and inhibits incentive access.\u003c/p\u003e \u003cp\u003e\u0026ldquo;Our digital customs interface serves foreign clients, but it\u0026rsquo;s not listed under any official export category.\u0026rdquo; \u0026mdash; Customs Tech Executive\u003c/p\u003e\n\u003ch3\u003e2. Underutilized Regional Opportunities\u003c/h3\u003e\n\u003cp\u003eSeveral respondents noted missed opportunities in \u003cb\u003eBBIN and BIMSTEC regions\u003c/b\u003e, citing weak logistics coordination and low cross-border digital interoperability as key constraints.\u003c/p\u003e \u003cp\u003e\u0026ldquo;Regional demand exists for our logistics platforms, but paperwork and procedural mismatches hold us back.\u0026rdquo; \u0026mdash; Freight Forwarding Manager\u003c/p\u003e\n\u003ch3\u003e3. Technology Adaptation as a Competitive Enabler\u003c/h3\u003e\n\u003cp\u003eTechnology-enabled service firms (e.g., fintech and logistics software providers) exhibited higher international outreach. Firms with API-enabled systems and cloud-based operations were more export-active.\u003c/p\u003e\n\u003ch3\u003e4. Visibility Constraints and Policy Disconnect\u003c/h3\u003e\n\u003cp\u003eMany interviewees highlighted a \u003cb\u003edisconnect between ground-level service innovations and high-level trade policy\u003c/b\u003e, which continues to prioritize tangible goods over intangible service flows.\u003c/p\u003e \u003cp\u003e\u0026ldquo;The current export policy doesn\u0026rsquo;t reflect our role\u0026mdash;even though we handle cross-border L/Cs every day.\u0026rdquo; \u0026mdash; Fintech Founder\u003c/p\u003e\n\u003ch3\u003e5. Demand for Institutional Recognition and Incentives\u003c/h3\u003e\n\u003cp\u003eStakeholders advocated for \u003cb\u003eformal recognition\u003c/b\u003e of embedded service exports through tax rebates, foreign currency earnings quotas, and export certificates\u0026mdash;mechanisms already available to traditional exporters.\u003c/p\u003e \u003cp\u003eThe results collectively illustrate that while embedded service exports from the import sector are growing in volume and diversity, they remain \u003cb\u003eunderreported\u003c/b\u003e, \u003cb\u003eunder-incentivized\u003c/b\u003e, and \u003cb\u003eunderintegrated\u003c/b\u003e into national trade strategies. Institutional recognition, regulatory clarity, and targeted support for digital service exports are essential to unlocking their full economic potential.\u003c/p\u003e"},{"header":"5 Conclusion","content":"\u003cp\u003e \u003cb\u003eBangladesh stands at a pivotal moment in its economic trajectory.\u003c/b\u003e While the ready-made garments (RMG) sector continues to underpin its export economy, this study reveals an emerging and underexplored growth driver: the internationalization of service exports rooted in the import sector. Services such as logistics, trade finance, ICT, regulatory compliance, and customs consulting\u0026mdash;once seen as ancillary\u0026mdash;are now being reconfigured and exported, signaling a structural transformation in the nation\u0026rsquo;s trade dynamics.\u003c/p\u003e \u003cp\u003eThis research identifies a paradigm shift: traditionally import-oriented services are evolving into exportable assets. Functions such as customs facilitation, inventory management, digital letters of credit, and compliance tracking\u0026mdash;originally designed to support RMG and other industrial operations\u0026mdash;have matured into standalone services with global demand. Their rise has been catalyzed by digital innovation, regional integration, and a growing international appetite for knowledge-intensive offerings.\u003c/p\u003e \u003cp\u003e \u003cb\u003eEmpirical data underscores this transformation.\u003c/b\u003e Between 2013 and 2023, Bangladesh\u0026rsquo;s import-linked service exports more than doubled, growing from USD 3.6\u0026nbsp;billion to USD 8.9\u0026nbsp;billion. The ICT sector alone contributed 28% of this increase, with logistics and trade finance also driving significant gains. Notably, over 40% of surveyed firms in this study now derive the majority of their revenue from export-oriented services. These findings reinforce the notion that embedded services have moved from the periphery to the core of Bangladesh\u0026rsquo;s trade competitiveness.\u003c/p\u003e \u003cp\u003eYet, a critical gap persists: \u003cb\u003einstitutional recognition remains absent.\u003c/b\u003e Despite their growing economic contribution, embedded service exports are largely unrecognized in national trade statistics and policy frameworks. They are excluded from export credit schemes, tax rebates, and other incentives typically available to goods exporters. Regulatory ambiguity and outdated data classifications hinder these services from being fully leveraged as strategic export drivers.\u003c/p\u003e \u003cp\u003eFieldwork comprising 30 structured surveys and 8 in-depth interviews highlights this disconnect. Stakeholders\u0026mdash;including logistics providers, fintech startups, customs consultants, and software developers\u0026mdash;consistently report that while their operations are international in scope, they are not acknowledged as exporters under current regulatory regimes. This \u0026ldquo;visibility gap\u0026rdquo; constrains investment, dampens innovation, and limits scaling potential.\u003c/p\u003e \u003cp\u003e \u003cb\u003eDigital transformation is emerging as a critical enabler.\u003c/b\u003e Firms with advanced digital capabilities\u0026mdash;cloud-based infrastructure, API integration, and regional digital interoperability\u0026mdash;consistently outperform their peers. The correlation between digital readiness and export revenue is both strong and statistically significant (r\u0026thinsp;=\u0026thinsp;0.48, p\u0026thinsp;\u0026lt;\u0026thinsp;0.01). These findings suggest that digital maturity is a key determinant of success in service export markets and should be prioritized in policy frameworks.\u003c/p\u003e \u003cp\u003eThe regional dimension further underscores the opportunity. South Asia accounts for 43.3% of Bangladesh\u0026rsquo;s embedded service exports, followed by Southeast Asia (30%) and the Middle East \u0026amp; Africa (26.7%). These markets are increasingly demanding digital logistics, fintech tools, and compliance platforms\u0026mdash;areas in which Bangladeshi firms have demonstrated capacity and innovation. However, challenges such as inconsistent trade protocols and a lack of standardized digital frameworks across BBIN and ASEAN countries remain significant obstacles to regional expansion.\u003c/p\u003e \u003cp\u003e \u003cb\u003ePolicy reform is therefore imperative.\u003c/b\u003e To harness this momentum, key national instruments\u0026mdash;such as the National Export Strategy (NES) and the Logistics Master Plan\u0026mdash;must be updated to reflect the evolving trade landscape. Specifically, reforms should include:\u003c/p\u003e \u003cp\u003eIntroducing disaggregated export classifications for embedded services\u003c/p\u003e \u003cp\u003eProviding tax and currency incentives to qualifying service exporters\u003c/p\u003e \u003cp\u003eDeveloping export certification mechanisms tailored to service-based operations\u003c/p\u003e \u003cp\u003eEnhancing institutional capacity through targeted training in trade finance, ICT, and customs modernization\u003c/p\u003e \u003cp\u003eThis policy shift is particularly urgent as Bangladesh approaches its graduation from Least Developed Country (LDC) status in 2026. With preferential market access set to decline, the country must transition from a low-cost, goods-based model to a value-added, service-integrated trade framework. Alignment with the WTO\u0026rsquo;s Trade in Services Agreement and strategic use of the EU\u0026rsquo;s GSP\u0026thinsp;+\u0026thinsp;framework can support this transition and unlock new markets.\u003c/p\u003e \u003cp\u003e \u003cb\u003eIn conclusion, this study establishes that Bangladesh\u0026rsquo;s future export growth will be defined not by volume but by value and versatility\u0026mdash;anchored in services that originate within the import sector but evolve into globally demanded solutions.\u003c/b\u003e Recognizing, measuring, and incentivizing these services is not only a matter of policy fairness or economic efficiency; it is a strategic imperative for ensuring a resilient, diversified, and future-ready export economy.\u003c/p\u003e"},{"header":"Declarations","content":"\u003ch2\u003eEthics approval and consent to participate\u003c/h2\u003e\n\u003cp\u003eEthical approval for this study was waived as the study involved an anonymous survey of adult participants and posed minimal risk.\u003c/p\u003e\n\u003ch2\u003eConsent for publication\u003c/h2\u003e\n\u003cp\u003eInformed consents (Consent to Participate and Consent to Publish) were obtained from all participants where applicable.\u003c/p\u003e\n\u003ch2\u003eFunding\u003c/h2\u003e\n\u003cp\u003eNo funding was received for conducting this study.\u003c/p\u003e\n\u003ch2\u003eAuthor Contribution\u003c/h2\u003e\n\u003cp\u003eSA \u0026ndash; Conceptualization, Methodology, Data collection, Analysis, Writing - original draft. KNAM \u0026ndash; Introduction, Literature review, Referencing and data collection. SNS \u0026ndash; Data Collection, WritingFunding- No funding was received for conducting this study.Acknowledgements- We would like to thank all participants for their valuable time and cooperation during the survey.\u003c/p\u003e\n\u003ch2\u003eAcknowledgement\u003c/h2\u003e\n\u003cp\u003eWe would like to thank all participants for their valuable time and cooperation during the survey.\u003c/p\u003e\n\u003ch2\u003eData Availability\u003c/h2\u003e\n\u003cp\u003eThe datasets generated during and/or analysed during the current study are available from the corresponding author on reasonable request.\u003c/p\u003e"},{"header":"References","content":"\u003col\u003e\n\u003cli\u003eAbdullah Junayed, Fowjia Akter. \u0026quot;ECONOMIC GROWTH AND CHALLENGES OF READYMADE GARMENTS IN BANGLADESH .\u0026quot; 2023.\u003c/li\u003e\n\u003cli\u003e\u0026quot;ADDRESSING CHILD LABOUR IN THE BANGLADESH GARMENT INDUSTRY 1995-2001 .\u0026quot; 2004.\u003c/li\u003e\n\u003cli\u003eALFAHD, OSAMA ABDULHAKEEM HEZAM. \u0026quot;OPPORTUNITIES AND CHALLENGES ON IMPORT AND EXPORT PROCESS: CASE OF IBISMA\u0026rsquo;S PARTNERS.\u0026quot; 2024.\u003c/li\u003e\n\u003cli\u003eAreej Aftab Siddiqui, San Vita. \u0026quot; Impact of Logistics Performance on Trade with Specific Reference to Garment Sector in Cambodia, Bangladesh and India.\u0026quot; \u003cem\u003eSage Journal\u003c/em\u003e (2018).\u003c/li\u003e\n\u003cli\u003eBellal Hussain Molla, Md. Raihan Ubaidullah, Md. Abdul Latif, Mohinul Karim Khondker. \u0026quot;Prospects of Market Expansion of Domestic Cosmetics and Toiletries Products.\u0026quot; \u003cem\u003eBangladesh Journal of Tariff and Trade\u003c/em\u003e 3 (2015).\u003c/li\u003e\n\u003cli\u003eBGMEA. \u0026quot;SUSTAINABILITY REPORT 2020.\u0026quot; 2020.\u003c/li\u003e\n\u003cli\u003eChowdhury, Md Arman. \u0026quot;Global Market Expansion of Bangladeshi Garment Products: Challenges, Strategies, and Economic Implications.\u0026quot; 2023.\u003c/li\u003e\n\u003cli\u003eFlorido-Ben\u0026iacute;tez, L\u0026aacute;zaro. \u0026quot;EXPLORING THE SUSTAINABLE FUTURE OF E-COMMERCE COMPANIES THROUGH A DIGITAL MARKETING AND LOGISTICS CONTEXT.\u0026quot; \u003cem\u003eJournal of Management, Marketing and Logistics\u003c/em\u003e 11.1 (n.d.): 17-312.\u003c/li\u003e\n\u003cli\u003eHabib, Dr. Shah Md Ahsan. \u0026quot;Trends and Challenges of Trade Services by Banks:Bangladesh Context.\u0026quot; \u003cem\u003eSSRN\u003c/em\u003e (2017).\u003c/li\u003e\n\u003cli\u003eHelal Uddin, Mst. JamiaJannat Khanam. \u0026quot;Import, Export and Economic Growth: the Case of Lower Income Country.\u0026quot; \u003cem\u003eIOSR Journal of Business and Management (IOSR-JBM)\u003c/em\u003e 19.1 (2017): 37-42.\u003c/li\u003e\n\u003cli\u003eIslam, Samira Binte Saif and Anisul M. \u0026quot;Growth, Development and Selected Social Sustainability Challenges Facing the Bangladesh Export Garment Industry.\u0026quot; \u003cem\u003eMDPI\u003c/em\u003e (2025).\u003c/li\u003e\n\u003cli\u003eKeya, Farjana Yeasmin Chowdhury \u0026amp; Alma Jahan. \u0026quot;Readymade Garments Exports from Bangladesh: Challenges and Possible Way-Out.\u0026quot; \u003cem\u003eInternational Journal of Business and Management;\u003c/em\u003e 17 (2022).\u003c/li\u003e\n\u003cli\u003eM.A, HASAN. \u0026quot;EXPLORING THE FUTURE OF BANGLADESH IN THE CONTEXT OF SOUTH ASIAN DYNAMICS: OPPORTUNITIES AND CHALLENGES.\u0026quot; \u003cem\u003eAnAlysis And ForecAsting. iMeMo Journal\u003c/em\u003e (2025): 61-72.\u003c/li\u003e\n\u003cli\u003eMAHMUD, NAILA KABEER AND SIMEEN. \u0026quot;GLOBALIZATION, GENDER AND POVERTY: BANGLADESHI WOMEN WORKERS IN EXPORTAND LOCAL MARKETS.\u0026quot; \u003cem\u003eJournal of International Development\u003c/em\u003e (2004): 93-109.\u003c/li\u003e\n\u003cli\u003eMd. Sajib Hossain, Rashedul Kabir , Enamul Hafiz Latifee. \u0026quot;Export Competitiveness of Bangladesh Readymade Garments Sector: Challenges and Prospects.\u0026quot; \u003cem\u003eInternational Journal of Research in Business and Social Science\u003c/em\u003e 8 (2019).\u003c/li\u003e\n\u003cli\u003eMIAN, MOHAMMAD EMDAD ULLAH. \u0026quot;A STUDY ON COMPETITIVENESS OF READY-MADE GARMENTS FOR EXPORT-LED ECONOMIC GROWTH IN BANGLADESH: ISSUES AND CHALLENGES.\u0026quot; 2020.\u003c/li\u003e\n\u003cli\u003eMuhammad, Asad Ali. \u0026quot;IMPORT \u0026ndash; EXPORT BUSINESS PLAN,Case: Kenko Oy.\u0026quot; 2014.\u003c/li\u003e\n\u003cli\u003eOLHA PYROH, MARYNA PROKOPENKO, LIANA CHERNOBAY, ROMAN KOVALENKOYULIIA PAPIZH, YEVHENIIA SYTA ,. \u0026quot;Management of Business Processes and Export-Import Activity of Industrial Enterprises in the Digital Economy.\u0026quot; \u003cem\u003eMonographic\u003c/em\u003e (2021).\u003c/li\u003e\n\u003cli\u003eOsmani, S. R. \u0026quot;ACHIEVEMENTS AND CHALLENGES OF THE BANGLADESH ECONOMY: AN OVERVIEW.\u0026quot; n.d.\u003c/li\u003e\n\u003cli\u003ePrabir De, Selim Raihan, and Sanjay Kathuria. \u0026quot;Unlocking Bangladesh-India Trade: Emerging Potential and the Way Forward.\u0026quot; \u003cem\u003ePolicy Research Working Paper\u003c/em\u003e (2012).\u003c/li\u003e\n\u003cli\u003eProfessor Dr. Engr. Ayub Nabi Khan, Md. Rashed Ullah. \u0026quot;Export Scenario Between Bangladesh and China: Opportunities of Bangladesh in RMG Sector.\u0026quot; 13 (2017). \u0026lt;http://dx.doi.org/10.19044/esj.2017.v13n28p299\u0026gt;.\u003c/li\u003e\n\u003cli\u003eRahman, Debapriya Bhattacharya and Mustafizur. \u0026quot;Female employment under export-propelled industrialization: Prospects for internalizing global opportunities in Bangladesh\u0026apos;s apparel sector.\u0026quot; 1999.\u003c/li\u003e\n\u003cli\u003eRahman, Md. Mahbubur. \u0026quot;Textile Export Nexus in Bangladesh: An Econometric Exploration.\u0026quot; (2023).\u003c/li\u003e\n\u003cli\u003eRakib, Md. Abdur. \u0026quot;Export Trend of the Leather Industry of Bangladesh: Challenges to Sustainable Development.\u0026quot; \u003cem\u003eBUFT Journal of Business \u0026amp; Economics (BJBE)\u003c/em\u003e 1 (2020): 163-187.\u003c/li\u003e\n\u003cli\u003eRangsungnoen, Grid. \u0026quot;Aninvestigation of mediating factors for export\u0026ndash;import business performance excellence: a systems perspective framework for Thailand.\u0026quot; \u003cem\u003eThe TQM Journal\u003c/em\u003e (2023): 1588-1608.\u003c/li\u003e\n\u003cli\u003eRazzaque, Mohammad A. \u0026quot;Revitalising Bangladesh\u0026rsquo;s Export Trade: Policy Issues for Growth Acceleration and Diversification .\u0026quot; 2017.\u003c/li\u003e\n\u003cli\u003eSelim Raihan, Francois Bourguignon. \u003cem\u003eBangladesh\u0026rsquo;s Development: Achievements and Challenges\u003c/em\u003e. 2020.\u003c/li\u003e\n\u003c/ol\u003e"}],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":true,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":false,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":false,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Embedded service exports, Trade in services, Import-export nexus, Bangladesh economy, Logistics and ICT trade, Trade diversification, Export policy reform, LDC graduation, Development economics, Global value chains","lastPublishedDoi":"10.21203/rs.3.rs-6913262/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-6913262/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThe export landscape of Bangladesh is undergoing a subtle yet significant transformation, with embedded services emerging as a critical yet underrecognized contributor. These services\u0026mdash;logistics, trade finance, ICT, and compliance\u0026mdash;initially designed to support the import sector, are increasingly being internationalized, forming a new pillar of the country\u0026rsquo;s trade potential.\u003c/p\u003e \u003cp\u003eDespite their growing relevance, these embedded services remain statistically invisible and excluded from export policy frameworks. This gap limits strategic alignment, underutilizes economic potential, and obscures an important revenue stream for firms. Addressing this, the study aims to explore the nature, growth trajectory, and exportability of such services within the ready-made garments (RMG) value chain.\u003c/p\u003e \u003cp\u003eA mixed-methods approach was adopted, incorporating trend analysis (2013\u0026ndash;2023), institutional document review, eight semi-structured interviews, and a survey of 30 export-oriented service firms.\u003c/p\u003e \u003cp\u003eFindings reveal an 8.4% annual growth rate in embedded service exports. Over 40% of surveyed firms generate the majority of their revenue from these services, targeting markets in South and Southeast Asia, and the Middle East. Yet, regulatory ambiguity and the absence of formal recognition continue to constrain their scalability.\u003c/p\u003e \u003cp\u003eThe study recommends urgent policy reforms to recognize, classify, and incentivize embedded services, positioning them as a strategic lever for trade diversification, digital competitiveness, and a successful transition beyond LDC status.\u003c/p\u003e","manuscriptTitle":"Exporting Intangibles and the Import Export Nexus in Bangladesh","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2025-06-18 04:52:34","doi":"10.21203/rs.3.rs-6913262/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"5b2eaab4-0f23-45f3-9a75-10fbbd816b5d","owner":[],"postedDate":"June 18th, 2025","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"posted","subjectAreas":[{"id":50214988,"name":"Business and commerce/Business and management"},{"id":50214989,"name":"Social science/Business and management"}],"tags":[],"updatedAt":"2026-02-18T21:54:33+00:00","versionOfRecord":[],"versionCreatedAt":"2025-06-18 04:52:34","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-6913262","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-6913262","identity":"rs-6913262","version":["v1"]},"buildId":"8U1c8b4HqxoKbykW_rLl7","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}