Trade Liberalization and Ready-Made Garments Industry in Bangladesh
Liberalisasi Perdagangan dan Industri Pembuatan Pakaian Siap di Bangladesh

UniKL Business School, Universiti Kuala Lumpur
1016, Jalan Sultan Ismail
50250 Kuala Lumpur

abdrazak@bis.unikl.edu.my

UniKL Business School, Universiti Kuala Lumpur
1016, Jalan Sultan Ismail
50250 Kuala Lumpur

sharmin.unikl@gmail.com

Faculty of Economics and Management
Universiti Putra Malaysia
43400 Serdang
Selangor, Malaysia

mohdhisham@putra.upm.edu.my

UniKL Business School, Universiti Kuala Lumpur
1016, Jalan Sultan Ismail
50250 Kuala Lumpur

tahir@unikl.edu.my

Abstract

The study aims at examining the effect of trade liberalization on ready-made garments (RMG) industry in Bangladesh. It employs Johansen-Juselius Cointegration test and Vector Error Correction Modeling (VECM) on yearly data from January 1990 through September 2011. The results reveal a significant long-term relationship between RMG export of Bangladesh and the three tested explanatory variables (merchandise export of China and India plus domestic inflation in Bangladesh). The Granger Causality test shows the presence of dynamic relationship between the performance of RMG export of Bangladesh and the value of merchandise export from China and India. However, this dynamic relation is non-existent in relation to the inflation factor.

Keywords

generalized system of preferences; multi-fiber agreement; New industrial policy; quantitative restrictions; revised industrial policy; structural adjustment program

Citation

Abdul Hadi, A. R., Sultana, Q. S., Yahya, M. H., & Iqbal, T. (2013). Trade Liberalization and Ready-Made Garments Industry in Bangladesh. Jurnal Pengurusan, 37, 15–24.

@article{abdulhadi2013trade,
  title={Trade Liberalization and Ready-Made Garments Industry in Bangladesh},
  author={Abdul Hadi, Abdul Razak and Sultana, Qazi Shamin and Yahya, Mohamed Hisham and Iqbal, Tahir},
  journal={Jurnal Pengurusan},
 

volume={37},
  number={},
  pages={15—24},
  year={2013},
  doi={},
  publisher={Penerbit UKM},
}

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37 (2013) 15 – 24

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