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Trade liberalization and ready-made garments industry in Bangladesh


Citation

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

Abstract / Synopsis

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.


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Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
Publisher: Penerbit Universiti Kebangsaan Malaysia
Keywords: New industrial policy; Revised industrial policy; Quantitative restrictions; Structural adjustment program; Multi-fiber agreement; Generalized system of preferences
Depositing User: Nabilah Mustapa
Date Deposited: 06 Aug 2015 06:46
Last Modified: 21 Sep 2015 03:35
URI: http://psasir.upm.edu.my/id/eprint/28281
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