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International Journal of Textile Science 2016, 5(3): 39-48

DOI: 10.5923/j.textile.20160503.01

Role of Textile and Clothing Industries in the Growth and
Development of Trade & Business Strategies of
Bangladesh in the Global Economy
K. M. Faridul Hasan1,2,*, Md. Shipan Mia3, Ashaduzzaman3, Md. Mostafizur Rahman3,
A. N. M. Ahmed Ullah3, Muhammad Shariat Ullah2,4

1
School of Textile Science & Engineering, Wuhan Textile University, Wuhan, China
2
Department of Textile Management & Business Studies, Bangladesh University of Textiles (BUTex), Dhaka, Bangladesh
3
School of Textile Chemistry & Chemical Engineering, Wuhan Textile University, Wuhan, China
4
University of Dhaka

Abstract Bangladesh has emerged as a key player in RMG (Ready Made garment) sector since 1978. Textiles & Clothing
account for about 85% of total export earnings of Bangladesh. Out of which 76% comes from the apparel sector which
covers the major products of knit & woven shirts, blouses, trousers, skirts, shorts, sweaters, sportswear’s & many more casual
& fashion items. The sector currently employs approximately 1.5 million workers, mostly females from underprivileged
social classes. The pivotal factor in apparel industry is the workforce i.e. the operators, helpers, cutting masters, finishers etc.
Bangladesh is endowed with abundant & cheap workforce that is easily trainable & convertible into semi-skilled & skilled
workforce. Existence of such category is one of the advantages that Bangladesh will be enjoying over a considerable period in
the context of international trade on clothing. To cope up with global challenge we must adopt with factors of technological
advancement with proper working environment in textile & apparel sector of the country. In my report i tried to illustrate
about the prospect & future of RMG sector in Bangladesh.
Keywords Readymade garments (RMG), Employment, GDP, Export, Global economy, Trade

to an end at 2004 but it continued to show robust
1. Introduction performance, competitive strength and, of no less
importance, social commitment. RMG’s contribution to
This rapidly growing sector of the Bangladeshi economy Bangladesh economy is well-known, well-appreciated and
offers a unique competitive edge that supports profitable well-respected.
expansion into new strategic markets. From spinning to
weaving, from knitwear to leisurewear and high street 1.1. Objectives of the Study
fashions, the textiles and clothing industry is Bangladesh’s The general objective of preparing this report is to fulfill
biggest export earning sector [1]. The Ready-Made the requirement of thesis Program as well as completion the
Garments (RMG) industry occupies a unique position in the MBA in Textile Program through gaining the practical job
Bangladesh economy. It is the largest exporting industry in experience and view the application of theoretical
Bangladesh, which experienced phenomenal growth during knowledge in the real life. The report focuses on two parts.
the last 25 years. The industry plays a key role in They are:
employment generation and in the provision of income to the 1.1.1. Primary Objective
poor. Nearly four million workers are directly and more than
The broad project objective is to analyze the garments
twelve million inhabitants are indirectly associated with the
sector of Bangladesh and relate the knowledge with the
industry. Over the past twenty five years, the number of
practical experience.
manufacturing units has grown from 180 to over 4000 [2].
The sector has also played a significant role in the 1.1.2. Secondary Objective
socio-economic development of the country. The quota came In order to reach the broad objective, some specific
objectives are identified.
* Corresponding author:
farid_textile@yahoo.com (K. M. Faridul Hasan)
1. To know the different aspect of garments industry, its
Published online at http://journal.sapub.org/textile prospects and problems.
Copyright © 2016 Scientific & Academic Publishing. All Rights Reserved 2. To show some statistics of RMG industry.

the corresponding categories are the principal reasons for such a country is much concerned about the growth of export narrow product concentration. and the Export Promotion Bureau. Apart from agriculture.1.9 billion in 2005.5 per 2006 Riots and strike by garments labor cent of the global total value ($276 billion) of garment 2007-2008 Stable growth exports. its share increased to about 76 per cent of those earnings in 2005 2003 Withdrawal of Canadian quota restriction & still now. o In many cases. T-shirts. of unites Manpower capacity capacity (m) 7.2. 20014). Bangladesh. jackets and source of income for the people of Bangladesh.: Role of Textile and Clothing Industries in the Growth and Development of Trade & Business Strategies of Bangladesh in the Global Economy 3.000 handloom 837 mtr 1.40 K.020. Limitations of the Study Bangladesh are noted in table-1. trousers.000 0. sweaters and other casual and soft the operations of foreign exchange business.000 knit/M 500 mtr 24. there are more than 4. up to date information was not Currently. only a few Agriculture has been the backbone of economy and chief categories. Some important issues related to the RMG industry of 1. access was denied to procedural and trousers are the main woven products and undergarments. access to relevant papers and documents owned with the exception of a few foreign firms located in were strictly prohibited. rotor Textile weaving 400 25. 2001) [1. The country’s RMG industry grew by more than 15 2008-2015 Continuous growth per cent per annum on average during the last 15 years as Source: Compiled by the databases of the Bangladesh Garment shown in table-1. jute and tea were the most export-oriented industries.000 Source: Director's Report 2014. Bangladesh exported garments worth the 2005 Phase out of quota restriction equivalent of $6. But with the continual perils of flood.342 498. employment generation of the RMG sector have been Bangladesh. Woven garment products still dominate the garment export earnings of the country. such products currently 2.000 (b) Local market 2. Although various types of garments are manufactured in the country. Literature Review increasing since the early 1990s.000 Dyeing and finishing (FF): (a) Semi-mechanized 180 . Economies of scale for getting highest productivity from agriculture and achieve large-scale production and export-quota holdings in the self-reliance in food production. T-shirts. The RMG industry is the 1985 Imposition of quota restriction only multi-billion-dollar manufacturing and export industry 1990 Knitwear sector developed significantly in Bangladesh. matters conducted directly by the top management in socks. the 1970-1980 Early period of growth role of the jute sector to the country’s economy has 1982-1985 Boom days deteriorated (Spin anger. increasing at double-digit rates from year to year [2. 1986). Government wants to decrease poverty by website. 4]. Overview of Bangladesh Ready Made Garments account for more than 40 per cent of the country’s total RMG Industry export earnings (BGMEA website). Table 2.000 Knitting. To analyze the statistical data related to RMG industry. knit dyeing (GF): (a) Export-oriented 800 12. Shirts. Bangladesh have accelerated and changed her exports substantially from time to time [2].000 5.001 1993 Child labor issue and its solution per cent to the country’s total export earnings in 1976.065 23. stockings.18 ml. such as shirts. More than 95 per cent of those firms are locally o In some cases. spld Textile spinning 341 1.000 Specialized textile and power loom 1. 475 doz 2.20 ml. Size of Bangladesh Textile Industry Installed machine Production Sub-sector No. export processing zones (Gonzales. which was about 2. Whereas the industry contributed only 0. Important issues related to the Bangladesh ready-made garment industry came into being.000 knit/Dy/M 3.500 .000 Export oriented RMG 4.600 mtr 23. the country sweaters.000 (b) Mechanized 130 . 3].000 RMG firms in published.000 SL/SLL 1.600 kg 400.000. Faridul Hasan et al. division. The share of knit garment products has been 2.000 Handloom (GF/F) 148.600 mtr 300. 1. failing jute Year Issue fiber prices and a considerable decline in world demand. constitute the major production-share (BGMEA made of villages. garments are the main knit products. The foreign exchange earnings and Manufacturers and Exporters Association. M. 120 mtr 10.600 mtr 80. and Nath. After Bangladesh Table 1. T-shirts o In some other cases.000 SL/SLL 400 mtr 43. Bangladesh Textile Mills Association .

RMG Industry Contribution to Different Sector 3. RMG sector has 3. which engineering (USD 9. The major importer of RMG products are USA and both directly and indirectly.13 Europe. For analyzing the collected data different statistical tools additionally.1. transport vehicle is also the largest exporting industry in Bangladesh. 4. earning around $5 billion annually oriented sector. Sources of Data sector activities. Secondary Sources overwhelmingly high backward linkage with textile sector 1.000 garment cumulative foreign currency earnings by the sector. electrical 20 years witnessed unparalleled growth in this sector. with its The garment industry is by far the country’s most woven and knit sub-components. hotels and tourism. Annual report of the various organizations such as Growth of the RMG sector and the related activities has BKMEA. since factories with up to 10 million livelihoods dependent on it 1978. The RMG sector has contributed to the shipping business For determining the significance of RMG export and Total in Bangladesh and stimulated setting up of several container export simple regression analysis has been used. and etc. Analysis of Data (57%). insurance.3. The RMG industry not only propelled the Data regarding the completion of this report are collected growth of spinning. Analysis & Findings of RMG Sector in port usage fees earned from the RMG sector account for Bangladesh more than 40% of the income of the port authority. time series analysis has been used.29 million).2. gas. in Bangladesh. Internet browsing through website searching. But there is other country that has a contribution to million dollars as stamp and postage. Different published material Such as books and articles. 5(3): 39-48 41 2. 4. Contribution to Economy The RMG industry paid 28. consumer goods the Textile companies. weaving. dyeing and finishing industries. when first export was registered. is estimated at 70. It is estimated that 4. production of accessories and spare parts. Export Promotion Bureau. Banking and Insurance 3.2. BTMC backward linkage with utilities such as electricity. It has important Bangladesh bank. International Journal of Textile Science 2016.2. recycling.1. The following table contains the list of The sector also paid USD 12.53 Million). Methodology Growth of RMG sector has spawned a whole new set of linkage industries and facilitated expansion of many service 3. exports. BTMC etc. RMG manufacturers also extensively use services of Clearing & Forwarding Agents for the purpose of customs clearance of inputs and finished goods. In FY 2007 the sector paid 10. but also rendered large externalities by contributing to other economic 3. license renewal fee etc. and machine tools attained a high profile in terms of foreign exchange earnings. 87% of importers of input and 15% of the RMG are used. the total RMG export. It has maintenance service ( USD 5. Engineering Sector 4. real estate. A World Bank survey revealed that almost all 4. BGMEA. Size of the Garments Industry of Bangladesh short span of time. contribution of export to Shipping and Logistics GDP.52 Million). Various data source like BKMEA. yarn and other ancillaries. The Bangladesh RMG industry. BGMEA. machinery and spare parts supplying [6]. The last maintenance service industry (USD 8. facilities. Major Market of RMG Industry Contribution to Government Exchequer The RMG industry of Bangladesh fully depends on the The RMG sector contributes to the government exchequer export. with 95 per cent of the woven and 90 per cent and accounting for about two thirds of all exports. service (USD 5. utility services and transportation. firms (98%) are the clients of the commercial banks for working capital and procurement of machines and equipment 3. For showing the trend of export. from both primary and secondary sources. industrialization and contribution to GDP within a . Bangladesh bank. increase of cargo handling and storage simple regression analysis has been used. The Bangladesh has near about more than 4. providing fabrics. All firms have their machines and plants insured and. exporters get their imports/exports insured.1. yards. Primary Source activities in such areas as banking.1. expansion of port facilities to handle large container For measuring the significance of profit and commission carrying trains. Through direct conversation with the respective officers of packaging.56 directly or indirectly as shown in table-2. billion US dollars [5]. of the knit exports being directed to foreign markets. direct taxes in FY 2014. is a pre-dominantly export important manufacturer.21 million).55 million dollars to the The Ready-Made Garments (RMG) industry contributes engineering sector which included payments to repairing and to the Bangladesh economy in a distinctive manner.61 million to the government as major importer of our RMG products. Export contributed a lot to the robust growth of the financial sector Promotion Bureau.2.1. 2.

Payments for ICT services which include communication.42 K.70 UK 725.00 999. It’s about 49 million dollar in 2014.10 Netherlands 528.45 964.17 571.34 million dollars in FY 2014.90 1197.25 USA 891.72 375. Knitting.46 317.04 1013.04 525.95 1130.85 France 692.91 Canada 283. Information and Communication Technology The RMG sector also plays a catalytic role in the growth of the country’s ICT sector.47 million dollars in FY2002. Bangladesh * FY = Financial Year (July-June) Utility Services Payment of Electricity bill by the RMG industry is estimated to be 29.62 450.73 702.28 246. Some pictures of Spinning.28 Italy 379.30 1259.19 440.82 461.18 892. hardware and software services are estimated at 19.94 731.92 660.98 1103. Dyeing and Garments large demand for consumer goods.46 554.55 595.05 2039.77 385.90 856.07 325.2 million workers in the industry have created a Figure 2.13 2573. Faridul Hasan et al.92 401.79 299.: Role of Textile and Clothing Industries in the Growth and Development of Trade & Business Strategies of Bangladesh in the Global Economy Figure 1.37 million dollars. A regular source of production floor of Bangladesh earning increases the basic consumption needs such as .27 Spain 384.61 1119.74 320.24 256.77 2022. amounted to an additional 7. M.74 990.71 855.48 Belgium 155. Bangladesh Exports by Major Products in FY 2013-14 Table 3.86 432. Emerging Consumer Market The 2.63 Denmark 178.97 2168. WASA etc.57 591. The services consumed by the RMG industry generated revenue for the ICT sector.71 Source: Export Promotion Bureau. Comparative Export Performance of Bangladeshi Knit Production Major Importing Countries (Figures in Million US $) Country 2009-10 2010-11 2011-12 2012-13 2013-14 Germany 1282. in 2014.97 445.84 1335. Utility payments for gas.32 318.

social response in these areas. A job employed in the RMG sector (around 80% are female). footwear. Expansion of women’s and women and the worst victims of violations of decent employment has contributed positively to the improvement work conditions. The Harkin Bill The spate of tragedies began on Thursday. As the income by the female member integrated approach. Though export-oriented apparel industry is the lifeblood The same survey further showed that female workers were of Bangladesh’s foreign exchange earnings.5. February 23. The elimination of child labor is also among the Bangladesh garment industry. It also has created a demand for protection. possibly caused by an electrical short Deterrence Act of 1993” which called for the elimination of circuit. The exhaustive and prolonged work schedule of RMG industries sometimes causes occupational disease among the workers. an international network In recent years. unique example through collective efforts which eventually cosmetics items. g. dresses. Employment opportunities draw attention to the existing poor working and living standard of the workers. Some Tragedies of RMG Sector decision making. of the savings behavior of the poor people since women tend Women workers are particularly deprived of their special to be better savers. or worst. women’s needs for public facilities such as transportation. fast food and other led to the development of a safety-net program for the child products. The concept of decent work has reduces dependency on male income it reduces their significant gender implications in Bangladesh RMG sector vulnerability.” said Ineke Zeldenrust of the Clean Clothes Child Labor Campaign International Secretariat. The independent earnings also allow these women to have a greater share in household 4. The sector has created an begging in the street.4. burden off their families. which ultimately impacts negatively on their Figure 3. In many other sources peg the death toll at several hundred in what countries these retrenched children ended up in more local garment workers rights’ advocates are calling the worst . Women Empowerment 4. thus taking a big welfare issues of garment workers are severely neglected [3]. which is now more than 5000 taka. communities. violence against women. A whole industry has been created to service this labors. endorsed in 2006. Condition of Workers of RMG Sector It is well recognized that women’s participation in income generation activities lends them a better status within the According to BGMEA about 3 million people are family and provides them with considerable freedom. The minimum wage is Taka 1650. international debate on child labor has that for years has highlighted the safety risks plaguing the intensified. improvements in family strenuous and less-remunerative jobs. 4]. the basic rights. maternity benefits) and remain more exposed to exploitation within their particular spheres of work. placed at the US Senate entitled “The Child Labor 2006 when a fire. The female workers tend to be underpaid and exposed to physical assault by both fellow colleagues and employers. The national labor movements are continuously demanding for National Minimum Wage. Development of Labor was the first of a series of child labor programs executed by the International Program on the 4. freedom of association and social dialogue in an education and health. The minimum wages rule for the garment sector. The Bangladesh RMG sector set a increasing demand for consumption of low cost commodities. turned to utensils and housing conditions etc. legal rights (e. funded by the US hundreds of thousands of people. safety etc. spending their earnings on their marriage. International Journal of Textile Science 2016. employment. ensures equitable access to household resources (nutrition) Growing apprehension is the already deprived garment and larger investment on female human capital (health and workers may face further retrenchment which may worsen education).6. and create a demand for policy real wages by ensuring rights to work. A “decent employment” means rising productivity and communication. 5(3): 39-48 43 improved diet. better healthcare. It also reduces the possibility of domestic since women constitute a vast majority of the labor force. Evidently. Distribution of FDI in Bangladesh by Activities productivity. Social Impacts of the RMG Sector Elimination of Child Labor of the ILO [3. core labor standards in the ILO Convention. The BGMEA/ILO/ UNICEF Child Labor Project in growing demand and created employment opportunities for the garment industry of Bangladesh. however retrench child workers from their factories. destroyed the four-story KTS Textile Industries in child labor in the export oriented manufacturing and mining Bangladesh’s port city of Chittagong. wage work at the garment “It is heartbreaking that year after year women and men industry has empowered women and improved their status are killed while making clothes for stores in our [3]. Initial reports stated industries. As a consequence many garment industries had to that 54 were killed and at least 60 were injured.

7. Some of these elements are workers skill. To face the upcoming challenges in RMG sector. the Second phase is the emergence of knitwear products that country should take the following measures: powered the recent double digit (year-on-year) growth 1. embroidered wear etc. 4. freedom of association and Latin American Integration Association 216.13 239.22 rights to collective bargaining at factory/enterprise level etc will certainly improve the productivity of the workers. However this not only limited earnings in the apparel sector. e. protection from physical European Free Trade Association 125. authorities have apparently productivity and efficiency level.81 216.81 1134. Building alliances with likeminded neighbors and life-threatening for their more than 6. Exploration of new market for RMG to protect the T-shirts. shorts. product diversification is the key to continuous standards and labor laws at workplace of all RMGs.000 workers.m. Improved working conditions can help to increase Region 2012-13 2013-14 productivity level. The apprehension regarding the post-MFA also and government support are among the key factors that discouraged the employers to arrange further training helped the country to continue the momentum in export programs for their work force. unplanned construction and inadequate safety measures as 8. Product Diversification 4. limited or no effort for any further development of its increased backward integration. Other factors like price competitiveness. low labor productivity. Possible Way to Face the Upcoming Challenges for The growth pattern of RMG exports can be categorized RMG Sector in Bangladesh into two distinct phases. In the globalize economy and ever-changing fashion 2. Table 4. sealed off three other factories connected to this facility 6. prime concern to get prepared for post MFA Bangladesh 4. diversify the product base ranging from ordinary shirts. betterment of working conditions. pajamas. cheap labor.95 subcontracting garments factories of the multinational Source: Export promotion Bureau companies should be ensured under corporate social responsibility. the past years. high level of investment. administration on China up to 2008.87 1642. Establishing a compulsory social safety net package entrepreneurs of the RMG sector have also been able to for RMG workers. Export and product diversification.96 proper safety and health measures. Develop backward linkage industries for RMG. through loss of production time. workers. Unconditional and quick implementation of core labor world. the management took very GSP facility. Emerging Markets 937. sweaters. enhanced learn the sewing techniques.9.000 workers were reportedly in the factory at the time employers and workers in RMG sector to develop of the 7 p. ladies and children’s wear industry and the workers and take maximum to sophisticated high value items like quality suits.98 133. Cardinal Fashion and Arena Fashion) citing 7. market and product diversification. Region wise Export Performance FY 2012-13 & 2013-14 re-working. 5. During the initial phase it was the woven category.28 8682. fire. The resilience and bold trend in befitting. Interest should be undertaken in cooperation with and 4. maintenance of USA & Canada 1592. Australian and jeans. It is clear that value addition accrues mostly in the design . etc. materials wastage. quality inconsistence. It needs to priorities its Despite many difficulties faced by the RMG industry over immediate actions from a number of possible solutions.54 Rights and welfare of the employees working in the Others 296. government should formulate a National Policy on this MFA phase-out period partly reflects the imposition of Ready Made Garments to establish a development trajectory ‘safeguard quotas’ by US and similar restrictions by EU for the sector to survive. about their rights and 10. it continued to show its robust performance As most of the labor laws have become old and not time and competitive strength. Meanwhile. Capacity building training and re-training activity for Over 1.8. Prospects of the RMG Industry needs to prepare a time bound national action plan to minimize the potential risks. Starting with a few items. Continuous training program to sensitize the workers in Bangladesh like as Rana plaza & Tajrin tragedy. other markers. but also contributed to loss of production reviewed below. Faridul Hasan et al.25 training. the 3. Investment in human resources. M. workers for post MFA period.g. trousers. branded advantage of free excess to Canadian. Formulation of a national policy on RMB industry and starting in FY04.89 and psychological harassment. in a quota-free world. jackets. Steps needed to be taken to Minimize the Risk financial assistance from the fraternal organizational A real and effective national consensus should be the abroad. There is competitors within the LDCs. (Vintex Fashion. which has been the The growth of RMG sector was facilitated by the supply of largest supplier of textiles and apparel to USA as shown in low cost labor and since the female workers could easily table-3.: Role of Textile and Clothing Industries in the Growth and Development of Trade & Business Strategies of Bangladesh in the Global Economy tragedy in the history of the Bangladesh garment industry.44 K. also some problems & accidents happened at different times 9. EU 7306. business success. which contributed the most.

After the the garment factories results in low productivity and liberalization of the quota regime some of the major textile comparatively more expensive apparels. These and related initiatives need underway towards capacity building through backward encouragement possibly intermediated by donor-assisted integration. which its competitors do not possess. these are mostly carried out with foreign investment outlook in this sector is encouraging. Figure 4 illustrates the well prove cost effective and thus helping Bangladesh to comparative average hourly wages in apparel industry of meet the challenges in the post-MFA era. In Bangladesh. industrialization in the country. At present whatever design work is done in investment both in terms of finance and technology. The local industry has flourished in spite of the challenges cited trend of back-to-back import has been declining over the above (e. The productive efficiency of labor is more important Backward Integration determinant for gaining comparative advantage than the RMG industry in Bangladesh has already proved itself to physical abundance of labor.g. selected developed and developing countries. the garment be a resilient industry and can be a catalyst for further workers are mostly women with little education and training. Flow of Investment Research and Training It is plausible that domestic entrepreneurs alone may not The country has no dedicated research institute related to be able to develop the textile industry by establishing the apparel sector. and the sooner local entrepreneurs can catch on to this Labor Productivity trend the brighter be the RMG future. It is important to have significant flow of in the business. 5(3): 39-48 45 items. this vital industry The employment of an uneven number of unskilled labors by still depends heavily on imported fabrics. of Sri Lanka. However. This is evident in the pace of lending to the RMG technology and knowledge transfer. This is an optimistic indication that a RMG workers in Bangladesh are the lowest even by the well equipped and modern backward linkage industry may South Asian regional standard. although workers and experts. and bureaucratic red years implying a rising contribution of domestic value tape) on the back of cheap female labor. South Korea and Hong Kong SAR. Hong Kong.. China. In part the momentum in the and BKMEA is planning on setting up a research and post-MFA phase-out period is indicative of the efforts training institute. Bangladesh labor suppliers Thailand. The wages paid to addition (Figure 2). To some extent the industry has foreseen advantages. International Journal of Textile Science 2016. Figure 4. A facilitating public sector and in the rising import share of RMG related sector role can be very relevant here [2. To date the the need and has embarked on its own capacity building. The the country. infrastructure. 4 and 5]. RMG is highly fashion oriented and modern mills with adequate capacity to meet the growing constant market research is necessary to become successful RMG demand. alternative but to produce textile items competitively at Cheap Labor Force home through the establishment of backward linkage with The strength of a firm depends on its specific comparative the RMG industry. machinery. However further progress would be necessary to improve and sustain competitiveness on a global scale. BGMEA has already established an the uncertainties before the MFA phase-out period caused a institute which offers bachelor’s degree in fashion designing sluggish investment scenario. India. Bangladesh If Bangladesh wants to enjoy increased market access must look for ways to improve the productivity of its labor created by the global open market economy it has no force if it wants to compete regionally if not globally. lead time. Export Volume & net retention of Bangladesh Knit wear sector . Indonesia and productivity is known to be lower when compared with that Taiwan increased their own RMG exports.

90 1210.22% 81.32 +41.04% 38.57 2013 October 862.20 +20.90 -4.59 +23.07 993.03 January +10.14 +7.70 +13.01 820.71 1790.43 +14.86% 79.19 +11.96 731.38 2013 April 795.22 August 792.07 August 898.45 March +22.50 October -1.14 July +25.85 21.48 1634.28 +7.91 July -0.74 March 920.71 February +10.62 December +14.13 +15.40 February +12.33 April +22.64 1965.93 +2.81 12.73 1092.72 2006.85 December +15. Bangladesh .88 June +4. M.88 +7.59 -10.54 December 1048.76 1262.88 Total FY 12-13 10.: Role of Textile and Clothing Industries in the Growth and Development of Trade & Business Strategies of Bangladesh in the Global Economy Table 5.07 24.99 May +10.06 2014 October 787.23 September 1064.04 2012 October 873.37 997.75 +2.05 1644.15% Export Performance of RMG of Bangladesh for 2014-15 in Million US ($) Export of RMG in FY 14-15 (Jul-Oct) (in Million USD) Monthly Growth Rate Compared to Last Year (%) (Jul-Oct) Year Month Knit Woven Total Month Knit Woven Total July 1307.95 1917.87 1229.20 2241.61 889.02 +26.37 1914.46 K.64 2092.63% Export Performance of RMG of Bangladesh for 2013-14 in Million US ($) Export of RMG in FY 13-14 (in Million USD) Monthly Growth Rate Compared to Last Year (%) Year Month Knit Woven Total Month Knit Woven Total July 1253.27% 80.65 +9.74 1183.28 April +13.18 +13.17 1630.68 1951.53 765.77 1846.68 991.09 May +15.70 (Jul-Oct) Share in National Export 42.35 1766.06 Total FY 2013-2014 12.72 +0.87 -2.98 July +4.49 1682.83 Share in National Export 39.53 1519.48 +10.93 November 877.76 1049.04 1364.68 +11.01 +19.66 Total FY 2013-2014 (Jul-Oct) +0.694.93 1042.66 2014 April 972.16 +5.44 +17.77 May 1008.55 -4.24 979.78 February 811.12 937.752.40 -1.63 1116.56 March 854.67 +4.12 June 1085.00 November +5.32 -4.77% 40.06 +15.058.38 2516.93% 41.049.29 +22.06 June 1130.71 Share in National Export 38.06 March +7.73 Total FY 12-13 +10.26 +9.14 +9.24 7.05 +8.60 January +22.42 3.44 815.25 +29.26 2043.84 -9.78 2202.96 September 746.96 +12.88 11.72 +46.70 -12.24 December 908.475.69 993.96 710.88 Total FY 2013-2014 +15.38 944.30 +13.55 September +41. Export Performance of RMG of Bangladesh for 2012-13 in Million US ($) Export of RMG in FY 12-13 (in Million USD) Monthly Growth Rate Compared to Last Year (%) Year Month Knit Woven Total Month Knit Woven Total July 1001.92 November 653. Faridul Hasan et al.02 +12.039.08 2517.78 August +5.26 2207.41 June +18.96 +16.14 +17.491.81 +12.24 +17.29 985.03 -18.24 +27.01 +3.85 1558.64 October +9.40 September +43.32% Source: Export Promotion Bureau.42 +4.61 May 1115.14 +0.20 +25.83 January 944.11 +15.94 +5.00 835.442.16 +3.92 +5.16 761.14 2313.68 +8.98 2278.32 697.09 February 915.41 September +0.2 August +7.38 August -24.12 August 848.80 +15.82 +41.40 +17.72 +14.515.15 796.96 1147.17 +23.96 November +34.34 1713.29 2001.50 September 1058.69 November November December December 2015 Total FY 2013-2014 4.77 January 1045.17 1443.49 +45.83 1195.49 October -8.84 1994.94 +5.

Regression Analysis statistical tools has been used.82 4 for 2013-14 2008 4859.02 + 519.21/11 increases for US$1 million.877 million. From the simple regression analysis the following Any decrease in export can cause a huge decrease in foreign equation is formed by considering GDP as dependent exchange income as well as profit.60 2 ∑t = 110 export growth to GDP growth.11. For indirect method of time series analysis by using eleven years showing the significance of RMG export to total export and data. US$ 3196.10. ii. Software SPSS Here. And the standard deviation is US$ 2622. RMG export is considered as independent variable Y = a + bt and GDP is considered as dependent variable. Statistical Analysis on RMG Sector 2013 7900.0 1 4900 1 Woven 13. In this age of globalization the demand for RMG products 4. And the standard deviation is US$ 13042. GDP will be increased by = 5328.694. 5(3): 39-48 47 4. Time Series Analysis is increasing day by day.8 0 0 0 Knitwear 13.41 -2 -8698. 15.0 software are b = Slope enclosed in the appendix and interpretations of those are Y = Dependent variable presented below sequentially. which = 57106.83 -1 -4859.29 million.25 -5 -15006. . a = Constant The outputs that are got by using SPSS 15.8 4 31603.90 9 Table 6. 2006 4019. independent variable. Ready Made Garments Sector of Bangladesh & Its Table 7.00 3 18900 9 4. International Journal of Textile Science 2016. The equation is: Now. the trend of RMG Export has been revealed through sector helps to build the economy of Bangladesh. t = Time Simple regression between RMG Export & GDP Here.12.15 US$ 38737.215.80 16 countries of the world is as shown in table-6.27 million.15million.0 is used to do this statistical analysis. This increasing trend in export Here. the variability of RMG export is US$ 2622.43 million. Here.11. The model of Time series analysis is the significance of RMG export growth to GDP growth simple regression analysis has been done.24 2011 5700. its growth and the significance of 2014 9211. The model will be as follows. Mean of RMG export is US$ 2939.681. 2013-14 & 2014-15 in Million US ($) 2004 3001.2 5 46056 25 RMG export to total export and the significance of RMG n = 11 ∑Y = 58608. the variability of GDP is So the equation for Export Business is. That means Y = 5328. Export Performance of RMG over Government's Strategic Target 2007 4349.20 million.42 2010 4900.77 3.15 t the average amount of RMG export per year is US$ 2939.20 16 This chapter reveals the statistical analysis on the RMG Sector for last ten years.94 -4 -15127.00 2 11400 4 2012 6300. Y = 24404.1.20 million.877 X a = ∑Y/n This equation indicates if RMG export of Bangladesh = 58608.61 4.83 1 Target (million Performance Over Target Product USD) 2014-15 2014-15 (Jul-Oct) 2009 4583.29 million.21 ∑Yt = 57106.30 25 Export of RMG product from Bangladesh to different 2005 3781. RMG Export Trend i.02 US$ 4. For analyzing the performance of RMG industry of Bangladesh some 4. The trend of export variable (denoted as Y) and RMG export (denoted as X) as business for last five years is presented here.43 million.058.60 / 110 indicates the average GDP per year of Bangladesh is = 519.01 + 4. Y = RMG Export of Bangladesh So. Regression equation Export is an influential tool for foreign exchange business. So.98 -3 -12059. Mean and standard deviation b = ∑Yt / ∑t2 The mean of GDP is US$38737. Calculation for RMG Export trend Statistics Year Export (Y) Time Yt t2 (n) (mill $) (t) Export Performance of RMG of Bangladesh for 2012-13.

: Role of Textile and Clothing Industries in the Growth and Development of Trade & Business Strategies of Bangladesh in the Global Economy iii. Government of the Peoples export trade. this variable is very influential as it can explain more than 50%. So. EU is willing to establish industry in a big way as an [5] Rashid. Lack of marketing tactics. Supportive Policy Regime”. railroad. 6. 7. . “The Effects of Unconscious Ideologies about Women on Sustainable Development” Society for to assess add on a garment or increase competence are International Development Publication. “Contribution of the RMG Sector to the Bangladesh Weakness Economy”. including in Bangladesh: Entrepreneurial ingenuity or public policy”. 6.05. Conclusions The result shows that there exists a high degree of positive RMG is the highest contributor in terms of both gross and relationship between GDP and RMG export. r = 0. 1.1. developed machinery are essential for better competence and output. the technicians and highly relationship between GDP and RMG export. A. Energy at low price. relaxation of Rules of Origin (RoO) has accelerated the 2. of Bangladesh from which most of the foreign currency is 4. REFERENCES Internet. earned. M/c advancement is necessary. Fax. Policy Note Series: PN 0702. 1. World Bank. 3. Improved GSP advantages under Regional Cumulative. Subject to natural calamities. Absence of easily on-hand middle management. (2010-2021). The machinery required [3] Adeyanju. Excellent Tele-communications network of E-mail. Again.981. supervisors and managers.13. Lack of training organizations for industrial workers. Faridul Hasan et al. A small number of manufacturing methods. Asia-Pacific Trade and Investment Review. M. Opportunity & Threat of earnings is more than 76%. D. Bangladesh is a member of Multilateral Investment Guarantee Agency (MIGA) under which protection and safety measures are available. Raihan. there is a significant significant because both. Foundation garments for Ladies for the FDI promise is significant level is bellow . 3. A. sweaters. 5. (2006). 2. Opportunity Policy Analysis Uni (PAU). Countries with which US is committed to enhance [6] General Economics Division. Bangladesh is included in the Least Developed Dhaka. [4] Nehal. 5. available at low labor charges. In addition to. the 4. “Future Prospects of Bangladesh’s Ready-Made Garments Industry and the 7. If skilled technicians are available to instruct. No. So for the economy Promotion Zones. So. ISD & Cellular services. There’s a large number of population are engaged in 5. Hossain. Comparing with other items in Bangladesh.A (2007). r stands for Co-efficient of multiple correlation. Perspective Plan of Bangladesh 3. 8. A (2002). Moderately open Economy.981 & significance level (1-tailed) is . M. Vol.48 K. missing in most industries. 4. [1] Bhattacharya. Co-efficient of multiple determinations & Co-efficient of multiple correlations Threat 2 2 Here. particularly in the Export this sector for their employment purpose. Rahman. “Competitiveness of the Bangladesh Ready-made Garment Industry in Major International 3. r = 0. Speed money culture. CPD Occasional Paper Series 50. (2006). 2. Weakness. This has resulted because of the Garments Sector of Bangladesh at a Glance backward linkage industry that has grown over time which Strength helped the sector to have the higher value addition and 1. [2] Haider. iv. Strength. Republic of Bangladesh.B. of Bangladesh RMG role of sector is extremely important. 0.. M. Here. Easily accessible infrastructure like sea road. the contribution of RMG in national export 4. explains 96.000. r stands for Co-efficient of multiple The exporters have to prepare themselves to harvest the determination. net export earnings. export growth. The result indicates that RMG export advantages offered by the opportunities.1% of the variation in the GDP. F. “Rise of Ready Made Garments industry option to china particularly for knits.. Workshop on Governance and Development. FDI is legally permitted. Considerable Qualified/keen to learn workforce therefore a much higher net retention rate. S. Readymade garments industry is the manufacturing sector river and air communication. Markets”. Bangladesh Bank. Correlation Matrix prearranged garment is an option because labor and The correlation between Total export and RMG export is energy cost are inexpensive.961.