Exports and Inequality: Evidence from the Highly Concentrated Textile and Garment Sector of Bangladesh

Bhuyan, Md Iqbal; Oh, Keun-Yeob

doi:10.1177/09731741211024870

Cited by 7 publications

(11 citation statements)

References 51 publications

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“…The method is applicable in small and finite data series cases, as it is with the data series (sample size of 29) used in this study. Studies involving small samples which employed the ARDL technique include those of Akbota and Baek ( 2018) and Bhuyan and Oh (2021), which used sample sizes of 24 and 25, respectively. Furthermore, the method is designed to yield efficient and consistent long-run estimates with valid t-ratios even in the presence of regressors' endogeneity which is peculiar with cointegrated variables (Harris & Sollis, 2003).…”

Section: Methodology * 21 Theoretical Framework and Modelmentioning

confidence: 99%

Macroeconomic Determinants of Employment in Nigeria’s Services Sector: Do Foreign Direct Investment and Exchange Rate Matter?

Aigheyisi

2022

REM

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This study employs the ARDL modeling technique to investigate the determinants of employment generation in Nigeria' s services sector, focusing mainly on the roles of foreign direct investment and exchange rate movements during the 1991-2019 period. This study found that in the short-run, FDI positively affects employment generation in the services sector, while currency depreciation adversely affects it with a one-year lag. The long-term employment generation effect of the FDI in the services sector remains positive. Still, it loses its statistical significance, while the impact of currency depreciation on services sector employment is positive and significant. It was also found that economic growth positively affects service sector employment generation in the short and long run, though the effect is only meaningful in the short term. The impact of trade openness is positive and significant over a short period but also turns out to be non-significant in the long run. Financial sector development favors employment generation in the services sector in the short and long run. Based on this evidence, it is recommended that the government try to enhance the attractiveness of various sectors of the economy to FDI and guard against undue appreciation of the nation' s currency. It is also recommended that economic growth and the development of the financial system be prioritized. Given the transience of the effect of trade openness on employment generation in the services sector, caution must be exercised in implementing trade liberalization policies. These measures, if implemented, are expected to enhance job creation in the nation' s services sector.

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Section: Methodology * 21 Theoretical Framework and Modelmentioning

confidence: 99%

Macroeconomic Determinants of Employment in Nigeria’s Services Sector: Do Foreign Direct Investment and Exchange Rate Matter?

Aigheyisi

2022

REM

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“…The major reason for the decline of woven export is the dependence on imported raw materials which caused a delay in production and impacted delivery time. On the other hand, domestically produced yarn and fabrics are used for knitwear production which speeds up the production process (Bhuyan & Oh, 2021;Chandra & Ferdaus, 2020;Mottaleb & Sonobe, 2011).…”

Section: Rmg Product and Export Regionmentioning

confidence: 99%

“…The related and supporting industries in the RMG industry of Bangladesh can be described as the textile raw materials industry, subcontractors, logistics, and financial institutions (Akter, 2020 ; Islam, 2021 ). The banks and insurance companies are the other two main supporting industries that assist the RMG industry by providing working capital to fulfill its contractual terms (Bhuyan & Oh, 2021 ; Uddin, 2014 ). However, the garment industry of Bangladesh didn’t get enough support from the local textile raw materials industry as the demand always remains higher than the supply.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Previous studies (Yunus & Yamagata, 2012;Kathuria, 2013;Alam et al, 2017;Mostafa & Klepper, 2018;Hossian et al 2019;Rasel et al 2020;Hasan et al, 2020;Islam, 2021;Zaman, 2021;Bari & Jin, 2021) found a vast labor force, low wages, suitable locations, and export-friendly policies as the competitive advantages of Bangladesh's RMG industry. These studies (Yunus & Yamagata, 2012;Alam et al, 2017;Mostafa & Klepper, 2018;Chandra & Ferdaus, 2020;Islam, 2021;Bhuyan & Oh, 2021) were focused primarily on the post-Multi-Fiber Arrangement (MFA) quota period (2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012)(2013)(2014)(2015) and used secondary data to identify the competitive advantages. However, no recent study has been conducted to determine the present competitive advantages of the Bangladeshi ready-made garments industry from the executive's perspective who are the life of this industry.…”

Section: Introductionmentioning

confidence: 99%

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Bangladesh's Emergence as a Ready-Made Garment Export Leader: An Examination of the Competitive Advantages of the Garment Industry

Swazan

Das

2022

JGBC

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Bangladesh is the second-largest ready-made garment (RMG) manufacturer and exporter in the world. The RMG industry of Bangladesh has become one of the fastest-growing industries globally since the 1990s and is the main source of its foreign earnings for the last three decades. To gain an in-depth understanding of the Bangladeshi RMG industry's competitive advantages, a semi-structured qualitative interview approach was employed with 14 executives currently working in the Bangladeshi RMG industry. Porter's (1990) diamond model of national competitive advantage was adopted as the study's conceptual framework. Interpretation of the study data revealed four key competitive advantages for the Bangladeshi RMG industry: (a) price, (b) on-time delivery, (c) quality, and (d) product advantages. This study explores the RMG industry of Bangladesh and identifies the competitive advantages from the executive's perspective, thereby adding value and originality to the academic literature.

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“…The textile export trade in the world grew from US$258.4 billion in 2016 to US$288.06 billion in 2021. On the basis of rapid growth in textile trade, the influencing factors of bilateral textile trade have become a hot topic of researches (Abu-Qdais et al, 2021; Bhuyan & Oh, 2021; Wong & Ngai, 2022). Using the gravity model, previous literature have explored on the roles of GDP, geographical distance, exchange rate (ER), and labor burden in textile trade (Gendron, 2021; Rotimi et al, 2021; Wong & Ngai, 2022; Youn & Jung, 2021).…”

Section: Introductionmentioning

confidence: 99%

Factors Affecting Textiles Products Exports of Major Producers: A Gravity Model Approach

Chen,

Ahmad,

Jiang

et al. 2023

Sage Open

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This study employed the gravity model approach to explore the predictors of textile product exports of the top 10 major textile producers. A specific dataset was generated and used to estimate the effects of 14 textile commodities selected in specific countries using Poisson regression and panel data from 1990 to 2021. The 10 major textile export countries hold significance in the global industry, providing comprehensive insights into export factors. Their diverse representation aids in understanding the challenges faced by exporters across continents. These countries possess substantial export markets and showcase various strategies and trade policies. Reliable data availability enables accurate analysis of factors affecting textile exports. Studying these countries enhances export performance and informs global industry strategies. Estimated results indicate that the real exchange rate, real GDP of the reporting country, preferential trade agreements, and the common border are significant positive predictors for textile exports of all commodities. The results further show that distance, average weighted tariff, and language have negative effects on the textile exports of all selected commodities. The transportation cost, measured by distance, is a barrier to textile commodity exports. The findings highlight the significant factors influencing textile exports and provide insights for exporters, policymakers, and researchers in the industry. Notably, this study addresses the challenges encountered by textile product export companies. These challenges include trade barriers, regulatory compliance, fluctuating exchange rates, intense competition, rising production costs, and market access barriers. By analyzing these challenges within the gravity model framework, the study aims to offer comprehensive insights into the complexities faced by textile exporters and their impact on the industry. The outcome of this study will be beneficial for the world’s major textile producers in setting their export targets and strategies to promote textile and cotton exports. The study suggests that the major exporters should benefit from moving exports to rich markets, which are situated at a nearby distance. The results of this study can be valuable for exporters in setting export targets, devising strategies, and formulating trade policies to overcome these challenges and enhance the competitiveness of the textile industry. The corresponding practical implications include the need to strategically manage exchange rates, focus on promoting exports to rich economies, reduce transportation costs, leverage preferential trade agreements, manage average weighted tariffs, address language barriers, and develop strategic export objectives and strategies. This research offers valuable insights for policymakers and society regarding factors influencing textile exports by major producers. Policymakers can utilize this information to inform trade regulations, exchange rate management, and the promotion of preferential trade agreements, enhancing export competitiveness and fostering sustainable practices. The research promotes international cooperation by encouraging collaboration and the sharing of best practices among reporting and partner countries. The findings contribute to economic growth, job creation, and improved standards of living, benefiting society as a whole.

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Exports and Inequality: Evidence from the Highly Concentrated Textile and Garment Sector of Bangladesh

Cited by 7 publications

References 51 publications

Macroeconomic Determinants of Employment in Nigeria’s Services Sector: Do Foreign Direct Investment and Exchange Rate Matter?

Macroeconomic Determinants of Employment in Nigeria’s Services Sector: Do Foreign Direct Investment and Exchange Rate Matter?

Bangladesh's Emergence as a Ready-Made Garment Export Leader: An Examination of the Competitive Advantages of the Garment Industry

Factors Affecting Textiles Products Exports of Major Producers: A Gravity Model Approach

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