Impact of export and import on value addition of ready-made garments sector in Bangladesh

Abstract

Bangladesh has achieved the prestigious second place among the biggest textile exporters countries. The paper's main objective was to explore the relationship between value addition from ready-made garments with export and import from that sector. The study further focused on the influence of previous exports, imports, and value addition on the current value addition. The study was based on three time series variables, namely export, import, and value addition from ready-made garments of Bangladesh, using data from the Bangladesh Central Bank (Bangladesh Bank) for the years 1994 to 2020. The time series variables exhibited the unit root problem and were converted to stationary after the first difference, checked by Augmented Dickey-Fuller (ADF) Test. The multiple linear regression model illustrated, on the one hand, a highly significant and positive relationship between value addition and export, on the other hand, a highly significant and negative relationship between value addition and import for the ready-made garments in Bangladesh. Moreover, the paper used the Vector Autoregression (VAR) model to explore the influences of lag values of those three variables on value addition. The results suggested that causation among the variables was significant in the short run, but insignificant in the long run. In conclusion, Bangladesh's ready-made garment industry plays an important role in the economy, and it is prudent to expand manufacturing with more value addition in the future.

Women’s Empowerment: Impact of RMG; Case from BISIC, Fatullah, Narayanganj District

“…The economic empowerment of women within the RMG sector is closely associated with enhanced financial independence and increased contributions to household income (Mekonnen et al, 2021). Furthermore, this sector serves as a platform for skill development and employment, thereby fostering economic autonomy among women (Shoma, 2017). Studies underscore the critical importance of women's financial contributions to family income as a key facet of their empowerment (Mekonnen et al, 2021).…”

“…Studies underscore the critical importance of women's financial contributions to family income as a key facet of their empowerment (Mekonnen et al, 2021). The RMG sector significantly contributes to enhancing the financial capabilities of female workers, offering economic freedom and proximity to resources and facilities in urban areas (Shoma, 2017). This financial autonomy is vital for transforming the socio-economic status of women within their families and communities (Quisumbing et al, 2023).…”

“…Empowerment is intricately linked to women's access to resources and participation in decision-making processes. Women working in the RMG sector often experience limitations in decision-making power and resource access before employment (Shoma, 2017). However, employment in the RMG industry creates opportunities for women to overcome these barriers, fostering access to resources and involvement in decision-making within and beyond the household (Moushumy et al, 2023).…”

“…Women's empowerment in the RMG sector is not only influenced by workplace dynamics but also shaped by societal norms. A prevailing perception of women as burdens within the family in traditional social systems poses challenges to their empowerment (Shoma, 2017). Overcoming these societal norms becomes crucial for fostering a conducive environment for women's empowerment in the RMG sector (Njuki et al, 2022).…”

“…The empowerment of women has emerged as a multifaceted and imperative concept, garnering increased attention, particularly within the realms of the Ready-Made Garment (RMG) industry (Njuki et al, 2022;Shoma, 2017). This sector, a cornerstone of economic development in countries like Bangladesh, plays a pivotal role in shaping the empowerment experiences of women.…”