Title Page
Contents
Chapter 1. Introduction 13
1. Research background and motivation 13
2. Research objectives and contribution to the literature 17
Chapter 2. Development and Current Status of Textile and Garment Industry in Bangladesh 19
1. Introduction 19
2. Brief history of the development of the textile and garment industry in Bangladesh 24
2.1. Beginning phase: the role of South Korean firms 24
2.2. Trade liberalization and export-led growth strategy: the role of the government 27
2.3. Transitory period: MFA phase-out 31
2.4. Post-MFA period 32
3. Current Status of the textile and garment industry in Bangladesh 34
3.1. Export trends 34
3.2. Export market 34
3.3. Product composition 37
3.4. Employment generation 38
3.5. Contribution in economic development 40
4. Competitive factors of the textile and garment industry 42
4.1. Success (Positive) factors 42
4.2. Negative factors 45
5. Conclusion 49
Chapter 3. Do Chinese Textile and Garment Exports have Displacement Effects on Bangladesh? 51
1. Introduction 51
2. Literature review 58
3. Methodology 62
3.1. Data sources 62
3.2. Model specification 64
4. Empirical results and findings 67
5. Conclusion 77
Chapter 4. Wage differentials in the textile and garment industry: Firm-level evidence from Bangladesh 79
1. Introduction 79
2. Literature review 82
3. Data and methodology 84
4. Results and discussion 90
5. Conclusion 95
Chapter 5. Conclusion 98
1. Summary 98
2. Caveats and future research 102
REFERENCES 104
ABSTRACT 115
Table 2.1. Industrial policies of Bangladesh (1973 - 2022) 21
Table 2.2. Important events in the history of T&G of Bangladesh 26
Table 2.3. Tariff structure in Bangladesh (1989-2020) 28
Table 2.4. Number of garment factories and their employment generation 39
Table 2.5. Major industrial accidents in the T&G factories of Bangladesh 46
Table 3.1. Description of variables 63
Table 3.2. Descriptive statistics of the variables 68
Table 3.3. Estimation results (OLS) 69
Table 3.4. Estimation results (2SLS) 72
Table 3.5. Estimation results (System GMM) 74
Table 4.1. Description of Variables 86
Table 4.2. Descriptive statistics 88
Table 4.3. Estimation results (OLS) 92
Table 4.4. Estimation results (PPML) 94
Figure 2.1. Contribution of agriculture in GDP of Bangladesh (1971-2021) 20
Figure 2.2. Share of industry in GDP of Bangladesh (1971-2021) 22
Figure 2.3. Total export and import of Bangladesh to the World (1989-2015) 30
Figure 2.4. T&G export and its share in total export 33
Figure 2.5. Bangladesh's top export destination for T&G products in 2015 35
Figure 2.6. Bangladesh T&G exports in major export markets (1993-2015) 36
Figure 2.7. Product-wise share of T&G exports (HS classification) 37
Figure 2.8. Contribution of T&G exports in national GDP 40
Figure 2.9. Minimum wage in Bangladesh and its Asian competitors 41
Figure 3.1. Bangladesh's total T&G export and its growth (1993-2015) 52
Figure 3.2. Global T&G market shares of Bangladesh and China (1993-2015) 54
Figure 3.3. Product-wise share of T&G exports (HS classification) 56
Figure 3.4. Chinese total T&G exports and its growth (1993-2015) 58
Figure 4.1. Share of industry in GDP of Bangladesh (1971 to 2021) 80