Readymade Garment Industry in Bangladesh: Growth, Contribution and Challenges

Rahman, Md. Tahidur; Habibullah, Md.; Masum, Md. Abdullah Al

doi:10.9790/5933-0803010107

Cited by 17 publications

(5 citation statements)

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“…The RMG industry is the exclusive multi-billion-dollar manufacturing and export industry in Bangladesh. Whereas the industry contributed only 0.001% to the country's total export earnings in 1976, its share increased to about 76% of those earning in 2005, and still, now its contribution is uprising day-by-day (BGMEA, 2006;Rahman, Habibullah, & Masum, 2017). There are more than 5000 RMG industries in Bangladesh where above 95% of firms are locally owned, and few farms are foreign-based located in the EPZ area.…”

Section: Literature Reviewmentioning

confidence: 99%

Business Trend Analysis of RMG Industry in Context of Bangladesh-A Case Study

Farhana

Sneha

Mondol

et al. 2022

IJIM

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Bangladesh has made a tremendous contribution to RMG (Ready Made Garment) sector since the 1970s. Textiles and apparels consider for about 85% of the total export earnings of Bangladesh. Though it’s quite difficult to mete out the dimension of performance and objection of the RMG sector in Bangladesh but to fulfill the task this study has made a search based on the study of attainable documents. The beauty of this study lies in its way of narration, a sequential way of description. The study discovers that since its inception, the RMG industry contributed significantly to our economy especially during the last three decades. The cross-check analysis has been conducted to compare the last three decades’ export of RMG, specific garments export, GDP, market share, etc to get a lucid idea of the business trend of the RMG industry. These initiatives focus more on the establishment of sound structure, skilled manpower, enhanced market access, access to finance at the competitive interest rate, adaptation with advanced technology as well as institutional development. Therefore, both public and private sectors need to take several preliminaries, independently and collaboratively to overcome these challenges. Moreover, to take control and reserve the golden share of RMG, assured branding needs to be expansive.

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Section: Literature Reviewmentioning

confidence: 99%

Business Trend Analysis of RMG Industry in Context of Bangladesh-A Case Study

Farhana

Sneha

Mondol

et al. 2022

IJIM

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“…This study found that the employment opportunities of women workers in the garment sector of Bangladesh play significant role to change their socio-economic condition, livelihood pattern, in case of decision making and to provide education to their children. Rahman et al [31] carried out a study on growth, contribution and challenges of the garment sector in Bangladesh. This study is based on secondary data.…”

Section: Literature Reviewmentioning

confidence: 99%

Garment Sector Development Nexus Economic Growth in Bangladesh: A Dynamic Cointegration and Causality Analysis

Hossain¹,

Alam²

2021

IJBER

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In Bangladesh the garment sector is one of the major industrial sector which occupied its foremost presence in the economy of the country in terms of foreign exchange earnings, contribution to GDP, and employment generation and as well. The garment sector plays significant roles for socio-economic development and poverty alleviation in Bangladesh. The exportoriented readymade garments (RMG) sector in Bangladesh, started its journey in late 1970s as a small non-traditional sector of export. The industry began its journey from 1978 and formally started its journey in the 1980s, after that RMG sector of Bangladesh started growing, capture the market globally and providing valuable performance. In 1979 the garment sector exported only 0.672 million $ with operating 12 garment factories by 0.39 million workers but in 2020 within a span of two decays export values have gone up to 31456.73 million USD with its 4764 export oriented garment industries including 4.23 million workers. Thus an important question is usually raised by the researchers, is there a long-run cointegration relationship between garment sector development and economic growth in Bangladesh? To give the answer of this question this paper has tried to find out whether the long-run cointegration relationship exists between garment sector development and economic growth in Bangladesh economy. The study is used the times series data from 1976-2020 for garment sector development and economic growth. The existence of long-run cointegration relationship is found between garment sector development and economic growth in Bangladesh economy. From the estimated results of the vector error correction (VEC) model it is found that there exists short run bidirectional causality between garment sector development and economic growth. The significance and negative sign of test statistic of ECM(-1) denotes the existence of long run causality between garment sector development and economic growth. Therefore, it can be presumed that there is a long-run equilibrium connection between garment sector development and economic expansion in Bangladesh economy. From the estimated values of response function it can be said that with respect to one standard deviation the variable garment sector development responds positively for the next fifteen years in the variable economic growth in Bangladesh.

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“…In Bangladesh, the RMG industry accounts for 81 per cent of export earnings, providing 4.2m direct employment places through more than 5,000 firms. Importantly, this sector contributes 16 per cent of the Bangladesh's gross domestic product and has elevated women's empowerment because 80 per cent of the workers in the Bangladesh's RMG industry are women (Rahman et al, 2017). Usually, home countries of buyers who import from Bangladesh RMG industry have strict product-based environmental regulations; thus, this industry is exposed to various international regulations and environmental pressures from buying firms in different countries.…”

Section: Research Contextmentioning

confidence: 99%

How do suppliers address stringent environmental requirements from buyers? An exploratory study in the Bangladesh ready-made garment industry

Shumon

Halim

Rahman

et al. 2019

IJPDLM

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Purpose Stakeholders such as customers, governments and environmental organisations are more concerned than ever about the impact of supply chain practices on the environment, leading firms to introduce environmental requirements into their supply contracts. While the extant literature on supply chains acknowledges this trend, it fails to inform comprehensively on the concept of “stringent environmental requirement” and its consequences. The purpose of this paper is to investigate this concept and explore how such requirements may translate into supplier environmental performance. Design/methodology/approach Qualitative methodology was adopted by the study and data were collected through conducting eight case studies in the Bangladesh ready-made garment (RMG) industry. Findings A number of factors were found to be influencing suppliers’ perception of stringency, such as uncertainty relating to the newness and deadline of buyers’ environmental requirements, the complexity of implementing the requirements, and the use of buyer-specific frameworks. The research also shows that suppliers’ efforts in building environmental capability play a vital role in dealing with stringent environmental requirements. Research limitations/implications The case studies are limited to the Bangladesh RMG industry. Given that environmental regulations vary across different countries and industries, the data may not reflect all the possible variations in stringent environmental requirements. Practical implications The new insight proposed by this research can guide firms to further understand how supplier environmental performance and the sustainability of their supply chain can be achieved. The research provides broad insight into how suppliers can address stringent environmental requirements and improve their environmental performance. Originality/value This research establishes evidence for the relatively new phenomenon of “stringent environmental requirements”, and develops a theoretical framework to demonstrate the relationships among the critical determinants relevant to this phenomenon.

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Readymade Garment Industry in Bangladesh: Growth, Contribution and Challenges

Abstract: Based on secondary data, the study is intended to draw the scenario of RMG industry in

Cited by 17 publications

References 0 publications

Business Trend Analysis of RMG Industry in Context of Bangladesh-A Case Study

Business Trend Analysis of RMG Industry in Context of Bangladesh-A Case Study

Garment Sector Development Nexus Economic Growth in Bangladesh: A Dynamic Cointegration and Causality Analysis

How do suppliers address stringent environmental requirements from buyers? An exploratory study in the Bangladesh ready-made garment industry

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