East West University

// Contribution of Garments Sector to the Bangladesh Economy //

1. Introduction
For Bangladesh, the Readymade Garments export industry has been the proverbial goose that
lays the golden eggs for over 15 years now. The sector now dominates the modern economy in both
export earnings, secondary impact and employment generated. The Ready-Made Garments (RMG)
industry occupies an inimitable position in the Bangladesh economy. It is the largest exporting
industry in Bangladesh, which experienced phenomenal growth during the last 20 years. By taking
advantage of an insulated market under the provision of Multi Fiber Agreement (MFA) of GATT, it
attained a high profile in terms of foreign exchange earnings, exports, industrialization and
contribution to GDP within a short span of time. The industry plays a key role in employment
generation and in the provision of income to the poor. Nearly two million workers are directly and
more than ten million inhabitants are indirectly associated with the industry.

2. Development of Garments Industry in Bangladesh

MBA_510: Macro Economics
In the field of industrialization, role of textile industry is found very prominent in both
developed and developing countries. The growth of garment industry in Bangladesh is a
comparatively recent one. In the British period there was no garment industry in this part of the Indo-
Pak-Sub-Continent. In 1960 the first garment industry in Bangladesh (Then East Pakistan) was
established at Dhaka and till 1971 the number rose to give (Islam, 1984). But these garments were of
different type intended to serve home market only. From 1976 and 1977 some entrepreneurs came
forward to setup 100% export oriented garment industry. Both domestic and international
environment favored the rapid growth of this industry in Bangladesh. Available records show that the
first consignment of garments was exported from the country in 1977 by Reaz and Jewel Garment.
Desh Garment was the first biggest factory that started functioning at Chittagong in 1977. Available
records also show that one of the reasons of the growth of garment industry in Bangladesh is the
collaboration of a local private garment industry, Desh garment with a Korean company, Daewoo.
South Korean Company, Daewoo, a major exporter of garments, was looking for opportunities in
countries for using their quotas subsequent to the signing of MFA in 1974. Because of the quota
limitation for Korea after MFA, the export of Daewoo became restricted. Bangladesh as a LDC got
the opportunity to export without any restriction and for this reason Daewoo interested to use
Bangladesh for their market. For this desire Daewoo signed a five years collaboration agreement with
Desh Garment. It included collaboration in the areas of technical training, purchase of machinery and
fabric, plant setup and marketing in return for a specific marketing commission on all exports by Desh
(Rock, 2001). The outcome of the collaboration of Desh-Daewoo was significant. In the first six years
of its operation, Desh export value grew at an annual average rate of 90 percent reaching more than $
5 million in 1986-87 (Mahmood, 2002). Rahman (2004) argued that the Desh-Daewoo collaboration
is an important factor to the expansion and success of Bangladesh’s entire garments export sector.
(Source: The Cost and Management, January-February, 2007)

In such a context, following Table shows the trend of growth and development of garment industry in
Bangladesh.

Table: Growth of Garments factories in Bangladesh

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// Contribution of Garments Sector to the Bangladesh Economy //

Source: Annual Report of BGMEA (2005) and various articles

The above Table shows that the growth was very slow till 1977 and got momentum from 1977 to
2005-06 in terms of number of industry. But the compound growth rate was highest till 1981 and the
rate was very good during 1989-90 to 1994-95 and thereafter i.e. 1994-95 to 2004-05, the industrial
growth has been declined though the numbers of industries have been increased. The capacity as well
MBA_510: Macro Economics
as number of equipments is very good indicator to examine the actual position of the garment industry
as well as size of the industry. In such a context, the following Table deals in this regard.

Table: Garments Industries with number of Machine

Source: Annual Report of BGMEA (2005). Figures in parentheses indicate percentage

From the Table it is found that more than half of the total garment industries in Bangladesh have the
number of machines up to 100 or less than 100 and very few industries have the machine more than
200. It indicates that the small scale industries have been dominated in the garment sector.

3. Contribution of Garments Industry to the Economy

3.1 Comparison of Commodity-wise Export of Bangladesh

In order to highlight the critical role of RMG sector and to pinpoint its remarkable growth,
commodity-wise export of Bangladesh for two specific years are shown below:

Fig: Composition of Export of Bangladesh in 1980-81

Composition of Export of Bangladesh in 1980-81

25%
Jute and Jute goods
Frozen food
1%
RMG
6% Others
68%

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// Contribution of Garments Sector to the Bangladesh Economy //

Source: Export Promotion Bureau (2007) and Export Statistics of Bangladesh, Bangladesh Bank (2007)

There has been a great deal of justifiable national pride in the resilience of Bangladesh's twin $10
billion plus export sectors, the ready made garments (RMG) and manpower, to the global financial
crisis of 2008. But, it has been evident for most policymakers that it will be difficult for us to move on
to the next phase of Bangladesh's economic development without developing new industries.
However, the next major export sectors, footwear/leather goods and frozen foods/aquaculture, are
barely worth $500 million.

Fig: Composition of Export of Bangladesh in 2007-08

MBA_510: Macro Economics

Source: The Daily Star, Strategy to Diversify Export, January 17, 2009

From the above two diagram we see the Bangladesh Garment revolution over 1980 to 2008 and
growth increased by 75% and we can easily realize that contribution of RMG was very insignificant
till 1980s. During that time, export of Bangladesh was dominated by Jute and Jute goods. In the year
1980-81, about 68 percent of the total export was from jute and jute goods. After that, contribution of
jute and jute goods in the export earnings continuously declined and dropped to less than 5 percent in
recent times. On the other hand, contribution of RMG export steadily increased.

3.2 RMG Exports from Bangladesh

According to the record of – Export Promotion Bureau (EPB), RMG industry made its first export in
1977-78 for an amount of $7000 which was less than one percent of total export earnings of the
country (Annual Report, EPB). At that time, jute sector was the dominant contributor in the export of
Bangladesh. However, contribution of RMG sector to total export greatly enhanced over the last
decades. Through the spectacular growth, the garment industry at present is top export earning sector
of Bangladesh. Export rose from $12,000 in 1976-77 to $ 9211.23 million in the year 2006-07.
Growth of RMG export is shown in the following diagram:

Fig: Growth of RMG Exports from Bangladesh (In million US$)

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// Contribution of Garments Sector to the Bangladesh Economy //

Source: Export Promotion Bureau (EPB), 2007-2008

This Diagram reveals that RMG export substantially increased over the last decade of the last century.
In terms of total monetary value of RMG export, there has been a steady growth through out the
history of RMG except the year 2001-02. From the year 1985-86, RMG export increased rapidly and
reached to more than $ 9 billion. From the following diagram, it is evident that because of continuous
growth of RMG export, total export of Bangladesh could maintain upward trend:

Fig: Comparison (1) of Total export and RMG export

EXPORT OF RMG
Trends in RMG Export and Total Export TOTAL EXPORT
14000
12000
M illion US $

10000
8000
6000
4000
2000 nomics
0

1998-99 

2002-03 

2004-05 
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
M B A _ 5 1 0 : M a c r o E c o 1993-94

1994-95
1995-96
1996-97
1997-98

1999-00
2000-01
2001-02

2003-04

2005-06
2006-07
Year

Source: Export Promotion Bureau (EPB), 2007-2008

The above diagram brings to the light that both total export and RMG export of Bangladesh
maintained upward trend except very few cases. The most clear and important findings of this
diagram is that volume of RMG export declined in the year 2001-02 as a result of which total export
earnings also declined from the volume of the previous year. This indicates the role of RMG in the
total export earnings of Bangladesh.

Contribution of RMG was very insignificant till 1980s. During that time, export of Bangladesh was
dominated by Jute and Jute goods. In the year 1980-81, about 68 percent of the total export was from
jute and jute goods. After that, contribution of jute and jute goods in the export earnings continuously
declined and dropped to less than 5 percent in recent times. On the other hand, contribution of RMG
export steadily increased.

Fig: Comparison (2) of Total export and RMG export

TOTAL EXPORT
Comparison between Total Export and RMG Export of Bangladesh EXPORT OF RMG

14000

12000
M illio n U S $

10000

8000
6000

4000

2000

0
1985-86 1990-91 1995-96 2000-01 2006-07
Ye ar
Source: Export Promotion Bureau (EPB), 2007-2008

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// Contribution of Garments Sector to the Bangladesh Economy //

3.3 Comparison between Knit Wear & Woven Wear

Woven Garments 47% and Knitwear 28%. In a period of just 9 months (up to March FY
2004-05) the figures have changed dramatically, the share of woven garment to the country's export
has reduced to 43.90%, on the other hand the share knitwear has increased to 33.64%. It indicates
clearly that the knitwear is performing well in both ways. In the first 9 months of FY 2004-05 the
scenario is as under:

MBA_510: Macro Economics

Source: Export Promotion Bureau (EPB), 2005-2006

Knitwear export increased by US$ 566.15

National export increased by US$ 676.19

The contribution of knitwear in national export increase is 83.73%. The cumulative average growth
rate of the sector is 27%. And it is continuously grabbing a more portion in the export pie of
Bangladesh. The knitwear sector is heavily driven by these favorable policies and took the
opportunity to develop a strong backward linkage for the sector.

Table: Comparative Statistics of Knit Wear & Woven Wear

    Volume in Million US$

Year Knitwear Woven Wear Total Export

Volum % Share in BD Volume % Share in BD RMG Bangladesh
e change Export change Export
89-90 14.84 0 0.77 609.32 29.34 31.67 624.16 1923.70
90-91 131.20 784.00 7.64 735.62 20.73 42.83 866.82 1717.55
91-92 118.57 -9.62 5.95 1064.00 44.64 53.36 1182.57 1993.90
92-93 204.55 72.51 8.58 1240.48 16.59 52.06 1445.03 2382.89
93-94 264.14 29.13 10.42 1291.64 4.12 50.97 1555.78 2533.90
94-95 393.26 48.88 11.32 1835.09 42.07 52.85 2228.35 3472.56
95-96 598.32 52.14 15.41 1948.81 6.20 50.20 2547.13 3882.42
96-97 763.30 27.57 17.28 2237.95 14.84 50.65 3001.25 4418.28
97-98 940.31 23.19 18.22 2843.33 27.05 55.09 3783.64 5161.20
98-99 1035.3 10.11 19.49 2984.81 4.98 56.18 4020.17
6 5312.86

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// Contribution of Garments Sector to the Bangladesh Economy //

99-00 1269.8 22.64 22.08 3082.56 3.27 53.59 4352.39

3 5752.20
00-01 1496.2 17.83 23.14 3364.20 9.14 52.02 4860.43
3 6467.30
01-02 1459.2 -2.48 24.38 3124.56 -7.12 52.20 4583.80
4 5986.09
02-03 1653.8 13.34 25.26 3258.27 4.28 49.76 4912.10
3 6548.44
03-04 2148.0 29.88 28.25 3538.07 8.59 46.54 5686.09
2 7602.99
04-05 2051.3 38.12 33.64 2676.84 3.77 43.90 4728.14 6097.12
(up to 0
March
)
Source: Export Promotion Bureau (web)

MBA_510: Macro Economics

3.4 Contribution in GDP

Garments Industry occupies a unique position in the Bangladesh economy. It is the largest
exporting industry in Bangladesh, which experienced phenomenal growth during last two decades. By
taking advantage of an insulated market under the provision of Multi Fibre Agreement (MFA) of
GATT, it attained a high profile in terms of foreign exchange earnings, exports, industrialization and
contribution to GDP within a short span of time. The industry plays a key role in employment
generation and in the provision of income to the poor. Nearly two million workers one directly and
more than ten million inhabitants are indirectly associated with the industry (Ahmed and Hossain,
2006). The sector has also played a significant role in the socio-economic development of the country.
In such a context, the trend and growth of garments export and its contribution to total exports and
GDP has been examined the following table shows the position.
Table: Growth and Trend of Garments Exports, and contribution to GDP

Source: Economic Review of Bangladesh (2006) and BGMEA (2005). Figures in parentheses indicate compound
growth rates (CGR) for the respective periods.

It is revealed from the Table that the value of garment exports, share of garments export to total
exports and contribution to GDP have been increased significantly during the period from 1984-85 to
2005-06. The total garments export in 2005-06 is more than 68 times compared to garments exports in
1984-85 whereas total country’s export for the same period has increased by 11 times. In terms of
GDP, contribution of garments export is significant; it reaches 12.64 percent of GDP in 2005-06
which was only 5.87 percent in 1989-90. It is a clear indication of the contribution to the overall
economy. The sector also has created jobs for about two million people of which 70 percent are
women who mostly come from rural areas.

Fig: Trend of RMG Export Volume, Export Growth and Contribution to GDP

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// Contribution of Garments Sector to the Bangladesh Economy //

Source: Export Promotion Bureau (EPB) (2007) and Economic Trends, Bangladesh Bank (2007)

3.5 Export Share to Different Countries

It is observed that Bangladesh garment export market has concentrated in USA and EU till
2004-05 which indicates Bangladesh has successfully established a remarkable presence in the world
MBA_510: Macro Economics
markets, particularly in the US and EU markets. In the year 2005-06 a successful turnaround was
observed in exports to third countries which is about 16.57 percent of total export market and it was
only 1.90 percent in 2001-2002. It is expected that the trend of market diversification will continue
and this will help to maintain growth momentum of export earnings.EU is the main export region of
Bangladeshi Knitwear constituting 83% (US$ 1780.57 million) of total knitwear export in FY 2003-
2004 followed by USA (11%, i.e. US$ 236.79 million).

Fig: Trends of export in USA & UK

Export ShareTotal
Table: to export
Export to USA,
Share EU and
to Combined Share of
Other countries Export Share of Other
USA European Countries USA & EU (%) Countries (%)
Year

2001-2002 42.67 55.43 98.10 1.90

2002-2003 38.02 57.12 95.14 4.86

2003-2004 28.64 65.42 94.06 5.94

2004-2005 30.64 64.24 94.88 5.12

2005-2006 33.67 49.77 83.43 16.57

Source: Bangladesh Bank Quarterly (FY 06)

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// Contribution of Garments Sector to the Bangladesh Economy //

3.6 Contribution in Living Standard

Average actual wages in the garment sector generally hover just above the legal minimum
wage. This means that most workers are earning more than the legal minimum, although it implies
that some must actually be earning less (see the Chart). Of course living costs - and therefore salaries -
are lower in developing countries than they are in the UK, but even in local terms, garment workers’
salaries are unacceptable. However, the minimum wage raised from £7 to £12 per month,
factories have begun demoting workers, stifling protest, and searching for any way possible
to reduce the wage bill.

Chart: Actual versus living wages

The labor costs incurred in the Textile Industry of Bangladesh is the lowest compared to its
competitors.

Bangladesh: $0.25/Hour Indonesia: $0.40/Hour Thailand: $1.00/Hour

China: $0.35/Hour Pakistan: $0.40/Hour Vietnam: $0.40/Hour
India: $0.60/Hour Sri Lanka: $0.45/HourMBA_510: Macro Economics  
(Source: “The
Readymade Garment
Industry of BD” by
Hafiz G. A. Siddiqi,
UPL,)
Source: www.labourbehindthelabel.org, 12 September 2007

3.7 Private Investment in RMG sector

It is plausible that domestic entrepreneurs alone may not be able to develop the textile
industry by establishing modern mills with adequate capacity to meet the growing RMG demand. It is
important to have significant flow of investment both in terms of finance and technology.

Table: Total Investment in RMG

Source: IIMC, Board of Investment, July 2004

Table: Local Investment Distribution by Sectors

Fig: Foreign Investment Distribution by Sectors

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// Contribution of Garments Sector to the Bangladesh Economy //

Source: Board of Investment, July 2004

3.8 Garments Product Portfolio and its Diversification

The specific character of products and level of industrial development indeed determines its
variance of product diversification. In such a context, the product mix, product line as well as product
diversification are very important strategies for any industry to develop its market by meeting the
present market requirements. For the garments industry it is also very important because product
diversification will call for developing capability for product development and product design
especially in response to fast changes in fashion. The following Tables deal with the value and
MBA_510: Macro Economics
quantity of different garment products export including their growth pattern from 1992-93 to 2005-06.

Table: Pattern of Woven and Knitwear Garments Export

Source: Garments Export Data, BGMEA and Export Promotion Bureau-EPB (2007). Figures in parentheses
indicate the share in percentage. CGR stands for compound Growth Rate.

From the Table it is evident that the compound growth rate of knit garment export is more than woven
garment export both in terms of value and quantity for the period of 1992-93 to 2005-06. The share of
knit garments in total export has been increased significantly both in terms of value and quantity. The
share of woven garment in total garments export has been decreased from 86 percent in 1992-93 to 52
percent in 2005-06. It is observed that the demand for knit garment is increasing in the export market.
It is also observed that the export quantity of knit garments has been exceeded the export quantity of
woven garments in 2005-06.

Table: Pattern of Export Performance of Different Garments Products

Source: Garments Export Data, BGMEA and Export Promotion Bureau-EPB (2007). Figures in parentheses
indicate the share in percentage. CGR stands for compound Growth Rate.

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From the Table, it is evident that the highest compound growth rate has been found in Trousers 32.13
percent, followed by T-shirts 20.36 percent, Jackets 9.28 percent, and T-Shirt 2.67 percent
respectively during the period of 1994-95 to 2005-06. The rate of Sweater is also significant during
the period of 1999-2000 to 2005-06. It is observed that the share of Trousers, and T-Shirt in the total
garment export is increasing. On the other hand, the share of shirts and Jackets is declining trend. The
Figures indicate that Bangladesh has concentrated in the production and export of Trousers, T-Shirts
and Sweater. This mean’s that there is a scope and actually need for structural change in product mix.

3.9 Other Contributions

3.9.1 Human Development

In the development history of Bangladesh, RMG sector contributed a lot in terms of

employment generation, involving women in the formal sector, increased substantial export earnings
etc. One significant aspect of the RMG's contribution in the development is the human development
MBA_510: Macro Economics
aspect. The sector contributed a lot in the following areas:

 Women empowerment
 Gender equality
 Improved health & nutrition
 Reduced child marriage

The development in the sector also contributed a lot in the growth and development of the backward
linkage industry of the country.

3.9.2 Banking and Insurance

Growths of the RMG sector and the related activities have contributed a lot to the robust
growth of the financial sector in Bangladesh. In FY 2002 the banking sector earned about 37 million
dollars from business with the RMG sector in the form of interest and charges and L/C charges. More
than one-tenth of the commercial banks’ asset portfolio belongs to the RMG and textile sector in the
country. In FY 2001 commercial banks lent Taka 4400 crore to the textile sector, while the amount
lent to the woven-RMG sector was Taka 812 crore. The export financing business of the commercial
banks is largely dependent on the textile and RMG sectors. The RMG sector received Taka 2175 crore
as export-finance in FY 2001 which was 46.14% of the total export financing portfolio of the banks.
A World Bank7 survey revealed that almost all firms (98%) are the clients of the commercial banks
for working capital and procurement of machines and equipment (57%).

The RMG sector has also contributed to the growth of the country’s insurance sector. On average,
every year the premium paid by the RMG sector to the insurance companies was about 6 million
dollars. All firms have their machines and plants insured and, additionally, 87% of importers of input
and 15% of the RMG exporters get their imports/exports insured. (Source: Debapriya Bhattacharya,
Mustafizur Rahman, Ananya Raihan, October, 2002)

3.9.3 Shipping and Logistics

The RMG sector has contributed to the shipping business in Bangladesh and stimulated
setting up of several container yards, expansion of port facilities to handle large container carrying
trains, increase of cargo handling and storage facilities. RMG manufacturers also extensively use

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// Contribution of Garments Sector to the Bangladesh Economy //

services of Clearing & Forwarding Agents for the purpose of customs clearance of inputs and finished
goods. It is estimated that port usage fees earned from the RMG sector account for more than 40% of
the income of the port authority. RMG sector contributed about US$65 million in FY2002 to earnings
of the Shipping business of the country by way of port charges, C&F Agents commissions, freight
charges, forwarding charges etc.

3.9.4 Transport Communication

The growth and development of inland transport services to a considerable extent owe to the
growth of the RMG industry. Both wheel transport service and railway service are widely used by
RMG sector for activities related to manufacturing and cargo movement. The concept of covered van
emerged in Bangladesh for safe transportation of the RMG products in particular. In 2002 the inland
transport industry received about 27.3 million dollars as revenue from the RMG sector.

3.9.5 Contribution to Government Exchequer

The RMG sector contributes to the government exchequer both directly and indirectly. In FY
MBA_510: Macro Economics
2002 the sector paid 6.3 million dollars as stamp and postage, license renewal fee etc. Payments made
for visa form, license form, GSP form and other forms to the Export Promotion Bureau amounted to
58.85 million dollars in FY2001. The sector also paid USD 2.4 million to the government as direct
taxes in FY 2002.

5. Conclusion

After the end of the Multi-Fiber Agreement (MFA) at the beginning of 2005 and the
changeover to the new World Trade Organization regime, it was feared that the Bangladesh’s
booming textile industry would suffer as it would loose business to countries like China and India.
Moreover, “The global economic meltdown has already left its impact on Bangladesh”. The impact of
the recession may realize at the middle of FY 2009”. So 2009 is very challenging year for the
garments sector of Bangladesh. To deal with the economic crisis government should provide fiscal
package for their apparel industry and need immediate government support to the RMG sector that
employed 28 lakh people otherwise, it might collapse rendering lakhs of people jobless. Apparel
exports touched US$ 11.88 billion in 2008 showing an increase of 27.04 percent over the previous
year. But it would be
difficult to maintain the growth trend in this year. RMG export stood at US$ 6.05 billion during the
first half of current fiscal year (July-December). Six-month growth rate comparing corresponding
period of previous year is woven 20.99 percent and knitwear 27.07 percent. However, this does not
indicate that the Bangladesh garment industry has become more competitive. So the challenge is
therefore to improve competitiveness, both in the RMG sector and economy wide, and diversify
exports. Garment industry in Bangladesh has been facing multidimensional problems since its
establishment. Acute power crisis followed by non tariff restriction, chronic labor unrest, lack of
infrastructural facilities, inadequate supply of material and accessories, inability or lack of efforts to
diversify the products and markets, irregularities relating to customs, bond, and shipping, financing
and the like are the major problems hampering the production and increasing the cost of production
significantly. Due to power shortage shipments are sent through air, thereby increasing its cost.
Unfortunately the government has not taken any step to improve the situation.

6. Recommendation

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// Contribution of Garments Sector to the Bangladesh Economy //

Bangladesh has earned nearly $8 billion in 2005-06 by exporting garment products, mainly to
Europe and the United States. This is about 75 percent of total export earnings of the country. The
RMG industry has around 4,250 units across the country. It employs more than 2 million workers,
most of whom are poor women. Whenever the country is criticized for its high level of corruption and
confrontational politics, its garment industry is held up as a success story. In fact a well designed plan
with diversified product manufacture still provides opportunities to use this sector for socio economic
development of Bangladesh. In such a context, it is suggested that appropriate and relevant
government and nongovernmental authorities/agencies can take some strategic and effective measures
which includes liberal bank loan facilities for reviving sick garment units and BMRE; development of
primary textile subsectors for fulfilling the raw materials needs; arrangement for captive power supply
for utilization of production and its continuation; adequate fiscal incentive for growing the sector;
strategic arrangement or mechanism for quick resolution of labor dispute; creation of separate
ministry for garment industry, establishment of cost reduction strategy and labor productivity cell to
conduct various study in this field and other supportive policies relevant for the growth, development
and survival of garment industry in Bangladesh. These may be helpful to overcome the problems and
the contribution of garment industry towards socio economic development of Bangladesh will be
improved and sustained through value addition.
MBA_510: Macro Economics

References
Md. Nehal Ahmed and Md. Sakhawat Hossain (September 2006), “Future Prospects of
Bangladesh’s Ready-Made Garments Industry and the Supportive Policy Regime”, Policy Analysis
Unit (PAU), Research Department, Bangladesh Bank (www.bangladeshbank.org.bd)

BBS. Statistical yearbook of Bangladesh, Bangladesh Bureau of Statistics (Dhaka, Government

of Bangladesh).

Bangladesh Garment Manufacturers’ and Exporters’ Association (BGMEA) (2005), Annual

Report 2005 (Dhaka: BGMEA).

Export Statistics of Bangladesh, Bangladesh Bank, Dhaka, (2007)

Mohmood, S.A. (2002), “How The Bangladesh Garment Industry Took Off in The Early Eighties:
The Role of Policy Reforms and Diffusion of Good Practices,” Alochona Magazine; Website.

Chowdhury, S.I. (1991), “Garment Industry and the Economy of Bangladesh,” The
Bangladesh Trade Journal, 1(2), August.

Islam, Mafizul A.F.M. (1984), “Notes on the Growth of Bangladesh Garments Industry,” The
Journal of Management Business and Economics, 10(4): 536.

Bakht,Z.(1993),“Social Dimension of Economic Reforms in Bangladesh, “Proceedings Of the

National Tripartite Workshop (Dhaka, Bangladesh): 71.

Wages in Bangladesh £15 per month (Source: Clean Up Fashion research). 3000/ (15x12) =
16.7. Handbag figure cited in Guardian, 21st February 2007. (http://tinyurl.com/ysubv9)

Rahman, S. (2004), “Global Shift: Bangladesh Garment Industry in Perspective, “Asian

Affairs,26(1): 75-91. January-March, 2004, CDRB publication.

Rock, M. (2001), “Globalisation and Bangladesh: The Case of Export Oriented Garment
Manufacture,” South Asiz, 24(1): 201-225.

Yamagata, T. (2006), “The Garment Industry in Cambodia: Its Role in Poverty Reduction

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// Contribution of Garments Sector to the Bangladesh Economy //

through Export-Oriented Development,” Discussion Paper No. 62, Institute of Development

Economics, Japan.

Debapriya Bhattacharya, Mustafizur Rahman, Ananya Raihan, (October, 2002),”Contribution

of the RMG Sector to the Bangladesh Economy”,
(http://www.cpd- bangladesh.org/publications/op/op50.pdf)

Adapted from ‘The Readymade Garment Industry of Bangladesh' by Hafiz G. A.Siddiqi,

UPL,Dhaka, 2004.

Spinanger, D. (1999), “Textiles Beyond the MFA Phase-Out,” World Economy,22(4):455.

Export from Bangladesh, Export Promotion Bureau (2007), Dhaka, Bangladesh.

The Daily Star. (www.thedailystar.net)

The Cost and Management Vol. 35 No 1, January-February, 2007 pp. 59-70.

MBA_510: Macro Economics

Acknowledgement
We would like to thanks the Almighty and special thank to our honorable teacher Ahmed Taneem
Muzaffar, Course instructor- Macro Economics (MBA_510) and Senior Lecturer, Department of
Economics, East West University, Dhaka for his helpful directions and guidelines at the very
beginning of this paper. We also like to pass thanks to our group members and classmates for giving
us a lot of support, cooperation, idea and information.

Our special thanks to the lab stuff of East West University. They helped us very much to collect data
and make this term paper.

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