Export pricing in preferential and non-preferential markets: Firm-level evidence from Bangladesh’s apparel exports in the context of LDC graduation

Project report 13 May 2026 Firms, Trade and Sustainable Growth

This paper analyses how Bangladeshi apparel exporters price identical products in the European Union and the United States under contrasting trade regimes, using firm-level data from 2010 to 2023. It finds that exporters consistently receive lower prices in the US market than in the EU, while exchange-rate pass-through and pricing-to-market behaviour differ across destinations, highlighting how trade preferences and market access shape export competitiveness beyond productivity alone.