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Trade liberalization and ready-made garments industry in Bangladesh

Abdul Hadi, Abdul Razak and Sultana, Qazi Shamin and Yahya, Mohamed Hisham and Iqbal, Tahir (2013) Trade liberalization and ready-made garments industry in Bangladesh. Jurnal Pengurusan, 37 . pp. 15-24. ISSN 0127-2713

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Official URL: http://ejournal.ukm.my/pengurusan/article/view/362...

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.

Item Type:Article
Keyword:New industrial policy; Revised industrial policy; Quantitative restrictions; Structural adjustment program; Multi-fiber agreement; Generalized system of preferences
Faculty or Institute:Faculty of Economics and Management
Publisher:Penerbit Universiti Kebangsaan Malaysia
ID Code:28281
Deposited By: Nabilah Mustapa
Deposited On:06 Aug 2015 14:46
Last Modified:21 Sep 2015 11:35

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