ijsab.com logo

Development Outcomes from Openness to International Trade on Bangladesh’s Ready Made Garments Sector: Comparative Advantage, Need for Dynamic Gains and Role of the Government Md. Anwarul Azim

Development Outcomes from Openness to International Trade on Bangladesh’s Ready Made Garments Sector: Comparative Advantage, Need for Dynamic Gains and Role of the Government

Author (s)

Md. Anwarul Azim

Abstract

­

Openness to international trade has brought about different development outcomes in different countries. Once it was thought that openness to trade is the panacea for development and it will always lead to positive development outcomes. However, Bangladesh’s experience of opening up to international trade suggests that it is a necessary but not sufficient condition for economic development. The country has experienced consistent economic growth throughout last two decades and a major contributor to her economic development has been export oriented Ready Made Garments (RMG) sector. Bangladesh could make RMG sector a success story owing to factor endowment of abundant labour. This comparative advantage in the factor of production allowed static gains like specialization to occur. However, only openness to trade did not make RMG sector a success story. The growth of RMG industries was supported by government as it introduced necessary institutional reforms related to RMG sector.  But the country failed to apply underlying comparative advantage in sectors other than RMG to be able to compete in global market. Under the mentioned backdrop, the purpose of this study is to analyze whether static gain has been transformed into dynamic one. To do so both qualitative and quantitative methods have been applied. Findings suggest that the country has been unable to achieve dynamic gains. In order to achieve dynamic gains openness to international trade must be supported by structural and institutional changes initiated by the government. The country should also focus on enhancing its comparative advantage by supporting existing sectors as well as promoting new sectors. In doing so trade policies should be directed towards signing free trade agreement (FTA) and export oriented labour intensive industrialization which in turn will lead to economic development and employment creation for the country.

 Keywords: International Trade, Comparative Advantage, Dynamic Gain, RMG, FTA.

Download PDF

Title: Development Outcomes from Openness to International Trade on Bangladesh’s Ready Made Garments Sector: Comparative Advantage, Need for Dynamic Gains and Role of the Government
Author: Md. Anwarul Azim
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.4610506
Media: Online & Print
Volume: 5
Issue: 5
Acceptance Date: 26/02/2021
Date of Publication: 17/03/2021
PDF URL: https://ijsab.com/wp-content/uploads/726.pdf
Free download: Available
Page: 66-74
First Page: 66
Last Page: 74
Paper Type: Research Paper
Current Status: Published

 

Cite This Article:

Md. Anwarul Azim (2021). Development Outcomes from Openness to International Trade on Bangladesh’s Ready Made Garments Sector: Comparative Advantage, Need for Dynamic Gains and Role of the Government. International Journal of Science and Business, 5(5), 66-74. doi: https://doi.org/10.5281/zenodo.4610506

Retrieved from https://ijsab.com/wp-content/uploads/726.pdf

 

About Author (s)

Md. Anwarul Azim, Lecturer, Department of International Relations, University of Dhaka, Bangladesh. Email:  azim2216@gmail.com

 

Download PDF

DOI: https://doi.org/10.5281/zenodo.4610506

ijsab.com logo

Impact of COVID-19 on the Supply Chain: a study in Bangladesh Fariya Tabassum

Impact of COVID-19 on the Supply Chain: a study in Bangladesh

Author (s)

Fariya Tabassum

Abstract

­

The COVID-19 is now the headache of the world trade and Bangladesh isn’t the anomaly of it. The nationwide lockdown strategy includes several protective measures affects the supply-chain and vindicates to access to agricultural products, inputs, markets and all those results in increasing prices of rice and pulses but the price of milk is 40% lower than that of January, vegetables are sold at 25-50% of production costs, drastic devastation in poultry firm keeping about 50% of eggs and 70% of broilers unsold as well as crab, shrimp, and fish producers faced several export bans thus price fall. The invasion in the service sector also included and that result in moved online or IT-based service providing everywhere including education, healthcare, financial and consultancy firm. The supply-chain effect in the pharmaceuticals industry is huge because of a demanding hike for certain products and on the contrary, 28% of SMEs have seen revenue drop by at least 50%. In the RMG sector, cancellation of orders of 900 million pieces of garments worth $2.9 billion resulting from the lack of demand from the US and European markets made shut down garments, incurred loss of nearly $ 6 billion and massive job loss. Price hike in smartphones, electric products are noticed. The demand also got low for luxury products. The study is based on primary and secondary data to accumulate the impact of COVID-19 on the supply chain for some selected industries of Bangladesh. This will create value to understand the sector-wise circumstances of COVID-19.

 Keywords: COVID-19, supply chain, Agriculture, RMG, SMEs.

Download PDF

Title:

Impact of COVID-19 on the Supply Chain: a study in Bangladesh

Author: Fariya Tabassum
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.4305819
Media: Online & Print
Volume: 4
Issue: 12
Acceptance Date: 26/11/2020
Date of Publication: 04/12/2020
PDF URL: https://ijsab.com/wp-content/uploads/632.pdf
Free download: Available
Page: 136-151
First Page: 136
Last Page: 151
Paper Type: Research Paper
Current Status: Published

 

Cite This Article:

Fariya Tabassum (2020). Impact of COVID-19 on the Supply Chain: a study in Bangladesh. International Journal of Science and Business, 4(12), 136-151. doi: https://doi.org/ 10.5281/zenodo.4305819

Retrieved from https://ijsab.com/wp-content/uploads/632.pdf

About Author (s)

Fariya Tabassum, Student, MBA, Department of Management, University of Dhaka.

 

 Download PDF

DOI: https://doi.org/10.5281/zenodo.4305819