The dissertation contains three main empirical chapters, in addition to a brief introduction and conclusion. Chapter II examines the brief history, current status, and competitive factors of the textile and garment industry in Bangladesh. Factors such as low labor costs, back-to-back LC facility by government, agglomeration economies based on firm location, preferential market access, bonded warehouse facility, and export processing zones (EPZ) contributed positively on the growth of this sector. However, the sector is also facing a number of problems as a threat to grow further. Poor infrastructure, long lead-time, labor unrest, increased corruption, limited product varieties, and lack of market diversification are some of the negative factors faced by the T&G sector in Bangladesh.
Bangladesh is now on the way to be graduated from LDC status to "developing country" in 2024. After the official announcement of "developing country" status, "zero duty" access to the EU will continue for three years until 2027. It seems that losing preferential market access in many export destinations is the most challenging aspect of the process. Bangladesh government should prepare from now on to grab the benefits GSP-plus from EU. The GSP-plus is provided to only few developing countries, with the satisfaction of several conditions imposed by the EU. Despite long resistance to signing the Minimum Age Convention, 1973, Bangladesh deposited with the ILO the ratification instrument on March 02, 2022, becoming the 174th ILO Member State to ratify this Convention. It looks like that Bangladesh government is ratified the convention for availing the benefits of GSP-plus. The signing of this convention might motivate Bangladesh to implement a national policy aimed at eliminating child labor and gradually raising the minimum age for admission to employment.
Chapter III investigates the effects of Chinese export performance in the textile and garment sector on that of Bangladesh for the period of 1993 to 2015. Applying the extended framework of the gravity trade model, the empirical results show that China does not displace the exports from Bangladesh, implying that an increase in Chinese exports of textile and garment items would also increase the exports of same product from Bangladesh to the third markets. This strong co-movement of export growth between China and Bangladesh suggests that the issue of Chinese rivalry effect was exaggerated in the literature. A significant and positive effect of the MFA dummy variable also reveal that Bangladesh didn't lose export competitiveness in the post-MFA period, rather the country built the capacity to stand confidently and fight aggressive competition. The paper suggests that the government of Bangladesh needs policy actions for investing in the cutting-edge technology, as cost-effective strategy-based labor cost may not be valid in the wake of fourth industrial revolution
Chapter IV investigates the determinants of wage differentials in Bangladesh's textile and garment (T&G) industry. The T&G case is important because the industry dominates the export revenues of the country and employs 3.2 million women (about 80 per cent) of a total 4 million workers. The study uses firm-level data from World Bank Enterprise Surveys of 2007, 2011, and 2013. Data were analyzed applying two different models; the OLS and PPML model. Results show that female workers earn less than their male counterparts. The study also finds that R&D, foreign ownership, a firm's location in the capital city, and labor productivity are the major determinants of wage differentials in Bangladesh's textile and garment industry. Given such findings, relevant policy implications have been discussed.