IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 10 NO. 7 2024
DOI: 10.56201/ijebm.v10.no7.2024.pg313.329

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Is the Garment Industry a Route to Economic Development for Bangladesh?

Sadia Tasneem Mst. Farhana Yeasmin

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Abstract

This paper explores the role of the garment industry in Bangladesh's economic development, highlighting both its successes and limitations. As the largest contributor to Bangladesh’s export earnings, the garment sector has undoubtedly played a significant role in the country's economic progress. Drawing comparisons to other countries' industrial revolutions, it examines how Bangladesh's reliance on low-cost labor and quota facilities initially propelled the sector's rapid growth. However, the paper argues that this reliance has stifled the industry’s long-term development, as it disincentivized investments in technological upgrades, productivity enhancements, and diversification into higher-value products. Despite the garment industry's role in boosting Bangladesh's exports, its potential for economic development has been hampered by several factors. Low wages, poor working conditions, and job insecurity have created a negative impact on the industry's ability to contribute to poverty reduction and income growth. Although the industry has provided employment opportunities, particularly for women, the paper raises concerns about the sustainability of these jobs due to short-term employment and exploitative practices. Additionally, the industry's limited ability to stimulate other sectors and drive structural changes has restricted its overall impact on Bangladesh's economic development. In conclusion, while the garment industry has been a significant contributor to Bangladesh's export growth, its contribution to broader economic development has been constrained by labor exploitation, dependence on external demand, and a lack of competitiveness.

keywords:

Garment industry; Economic development; Export growth; Bangladesh

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