Bangladesh: Market Force Supersedes Control

Yunus, Mohammad; Yamagata, Tatsufumi

doi:10.1057/9781137383181_3

Cited by 7 publications

(7 citation statements)

References 8 publications

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“…The economy, for example, has recorded stable GDP growth of above 5%, which primarily results from developed microcredit programs and garment industries. In terms of foreign trade, Bangladesh inherited a policy of import-substituting industrialization with import protection and a pegged exchange rate (Yunus and Yamagata 2014). These policies started to change in the late 1970s with deregulation and limited trade liberalization as part of an export-oriented industrialization policy.…”

Section: Datamentioning

confidence: 99%

FDI-growth and trade-growth relationships during crises: evidence from Bangladesh

Sarker

2024

Financ Innov

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This study examines foreign direct investment (FDI)-growth and trade-growth relationships in Bangladesh during three major crises: the economic crisis of 2007–2008, the commodity crisis of 2016, and the coronavirus (COVID-19) pandemic of 2020. The augmented autoregressive distributed lag (AARDL) bounds testing approach and Bayer and Hanck cointegration are employed on time-series data spanning the period 1974–2020. The results suggest that exports have positive effects on economic growth, while imports have insignificant effects in both the short run and long run. Total trade (the sum of exports and imports) has a positive but weakly significant effect on economic growth only in the long run, whereas FDI exhibits a positive effect in both the short run and long run. Although the crises are not found to affect economic growth directly or through trade (i.e., no dampening effect on trade-led growth), they are found to distort FDI-led growth in both the short run and long run. As robustness tests for long-run elasticities, the fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) cointegration techniques are implemented, yielding results similar to those obtained with the AARDL.

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Section: Datamentioning

confidence: 99%

FDI-growth and trade-growth relationships during crises: evidence from Bangladesh

Sarker

2024

Financ Innov

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“…In 2004, the Bangladesh government established export processing zones (EPZs) with the aim of attracting foreign investment (Yunus and Yamagata 2014). The initiatives facilitated the rapid growth of the industry (Kurpad 2014;Yunus and Yamagata 2014) with productivity increasing significantly (see Table 4.1) (BGMEA 2016b).…”

Section: The Bangladesh Apparel Industrymentioning

confidence: 99%

“…These staff subsequently established the nucleus of the apparel industry's technology and human resource management base in Bangladesh (Van Klaveren 2016). In short, quota-free exporting and technology transfer from East Asian firms, along with available cheap labour with high learning potential, boosted the manufacturing of apparel in Bangladesh (Yunus and Yamagata 2014). Further, the quota facilities from 1974 to 2004 under the Multifibre Agreement (MFA) and the Agreement on Textiles and Clothing (ATC) for the European Union and United States markets supported the upgrading of suppliers by raising cost competitiveness through tariff free market access, thus also serving to attract foreign investment (Curran and Nadvi 2015;Sattar, 2006).…”

Section: The Bangladesh Apparel Industrymentioning

confidence: 99%

A Governance Deficit in the Apparel Industry in Bangladesh: Solutions to the Impasse?

Islam

Khattak

Stringer

2017

Governing Corporate Social Responsibility in the Apparel Industry After Rana Plaza

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The rapid growth of Bangladesh's apparel industry has been facilitated by the emergence of global value chains (GVCs) connecting local suppliers with global buyers. The growth of the industry, however, has occurred without the parallel development of supportive institutions resulting in a governance deficit highlighted, in part, by ongoing disasters in which workers have been killed or injured. Building on the GVCs governance literature, this chapter discusses the need for public, private and social governance actors to work together to address the governance deficit in the aftermath of the Rana Plaza collapse. The chapter highlights the limitations inherent with one form of governance seeking to tackle problems in the industry and concludes that a mix of the three types of governance is needed.

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“…The conventional wisdom is that buyers seek out the lowest production costs. Several authors point to specific examples where low wages are an important determinant of increases in exports in Bangladesh (Yunus and Yamagata 2014), Viet Nam (Goto 2014), and Madagascar (Fukunishi and Ramiarison 2014). In particular, Goto (2014) suggests that wages in Viet Nam were slow to rise while exports were rising, which may have contributed to the sustained growth of the industry.…”

Section: Contracts Wages Overtimementioning

confidence: 99%

Working Conditions, Work Outcomes, and Policy in Asian Developing Countries

Robertson

Brown

et al. 2016

SSRN Journal

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Developing country labor practices and the working conditions that result from them are both generally poor and increasingly drawing attention from governments, corporations, and the popular media. This review provides an introduction to some of the leading academic literature and ideas that are important for understanding the persistence of poor labor practices and possible policies to address these conditions. The literature is reviewed with the goal of moving from the root causes of poor conditions to innovative solutions. Several such solutions, such as the Better Work program, are discussed.

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Bangladesh: Market Force Supersedes Control

Cited by 7 publications

References 8 publications

FDI-growth and trade-growth relationships during crises: evidence from Bangladesh

FDI-growth and trade-growth relationships during crises: evidence from Bangladesh

A Governance Deficit in the Apparel Industry in Bangladesh: Solutions to the Impasse?

Working Conditions, Work Outcomes, and Policy in Asian Developing Countries

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