Bangladesh Export Garment Paper Research

But let’s take a broader look about the industry in Bangladesh.Since 1971 the ready-made garment (RMG) sector has been instrumental in the development of the Bangladesh economy, where around 20 million people have been lifted out of poverty in just the last 2 decades.

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The study highlights the shift in comparative advantage for India and Bangladesh between two periods.

The study also points out constraints restricting the growth of export share of India in world market and offers suggestions to policy makers for enhancing India's export share in the world clothing trade.

Many studies predict that India will get a significant share of the world textiles and clothing trade due to the advantage of cheap labor and other factor resources but India's slower growth rate, as compared to other low‐cost competitors, indicates otherwise.

The purpose of this paper is to analyze the comparative advantage of India and Bangladesh for the clothing sector in the world export trade with the help of Balassa's index of Revealed Comparative Advantage (RCA).

The government supports the textile and garment trades with special export processing zones (EPZ), 8 designated areas where goods can be imported, manufactured and reshipped with a reduction in duties and minimal intervention by custom officials.

These are designed to make business easy, and to help attract foreign investors.Seen as a secondary problem for most garment suppliers, left overs as spare rolls or cutting scraps can be difficult to trace as they are usually sold to the local secondary market at low prices as quickly as possible after production is finished.Considering the vast number of waste dumping sites by roadsides all around Dhaka it’s clear that the local market is overwhelmed and waste made available far outstrips demand.Other business friendly policy includes low duty on new equipment and machinery upgrades, financial incentive for use of local inputs and the creation of clothing and textile villages.Factors outside of Bangladesh include GSP (trade privileges) in Europe and the rising business opportunity of the Russian market, which is diversifying from China and Turkey to Bangladesh in search of value labour costs.For calculation of RCA indices, the export data have been taken from “UN Comtrade”, an electronic database of the United Nations and from the database of the World Trade Organization (WTO).Further, Spearman rank correlation coefficient has been calculated for analyzing the changes over the period 1995‐2003 for India and Bangladesh.Annual growth in the apparel sector is predicted by the World Bank at around 8-9%, and the total garment export trade for Bangladesh has been estimated this year to be worth around 25 billion USD.That’s around 2,2 billion tonnes of materials going through garment production yearly.Many factors have been instrumental in the success of this rapid growth in the RMG sector, including crucial government policy and regulations.There is a vast, skilled labour force and people in the poorest rural areas have flocked into urban spaces for work opportunities.


Comments Bangladesh Export Garment Paper Research

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