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The Paradox of Export Growth in Areas of Weak Governance: The Case of the Ready Made Garment Sector in Bangladesh

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  • Ahmed, Faisal Z.
  • Greenleaf, Anne
  • Sacks, Audrey

Abstract

Can export growth occur in states with weak governance and competitive clientelism? Conventional wisdom is that effective industrial policy requires a politically stable country with a centralized government. Absent these conditions, countries can pursue alternative types of industrial policies. Contexts with stable, or predictable, mis-governance and a government committed to nonintervention can yield strong export performance. We test this hypothesis in Bangladesh by examining the creation of industrial policy in the Ready Made Garment (RMG) sector. This paper highlights how the particular “political settlement” in Bangladesh has created a viable environment in which the RMG sector continues to grow.

Suggested Citation

  • Ahmed, Faisal Z. & Greenleaf, Anne & Sacks, Audrey, 2014. "The Paradox of Export Growth in Areas of Weak Governance: The Case of the Ready Made Garment Sector in Bangladesh," World Development, Elsevier, vol. 56(C), pages 258-271.
    • Handle: RePEc:eee:wdevel:v:56:y:2014:i:c:p:258-271
    DOI: 10.1016/j.worlddev.2013.11.001
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    1. Carlson, Laura A. & Bitsch, Vera, 2018. "Social sustainability in the ready-made-garment sector in Bangladesh: an institutional approach to supply chains," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(2), March.
    2. Alison Heslin, 2021. "Riots and resources: How food access affects collective violence," Journal of Peace Research, Peace Research Institute Oslo, vol. 58(2), pages 199-214, March.
    3. Raaj Kishore Biswas & Enamul Kabir & Hafiz T. A. Khan, 2019. "Causes of Urban Migration in Bangladesh: Evidence from the Urban Health Survey," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 38(4), pages 593-614, August.
    4. Maryam Almasifard & Sasan Torabzadeh Khorasani, 2017. "Relationship Between Domestic Production in Agricultural and Industrial Sectors and Purchasing Power by Controlling for International Trade Variables (Iran)," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 244-253.
    5. Matthew McCartney, 2014. "The Political Economy of Industrial Policy: A Comparative Study of the Textiles Industry in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 19(Special E), pages 105-134, September.
    6. Suraiyah Akbar & Craig Deegan, 2021. "Analysis of corporate social disclosures of the apparel industry following crisis: an institutional approach," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(2), pages 3565-3600, June.
    7. Qi, Guoyou & Zou, Hailiang & Xie, Xuemei & Meng, Xiaohua & Fan, Tijun & Cao, Yuanhe, 2020. "Obedience or escape: Examining the contingency influences of corruption on firm exports," Journal of Business Research, Elsevier, vol. 106(C), pages 261-272.
    8. Anisur Faroque & Olli Kuivalainen & Jashim Uddin Ahmed & Mahabubur Rahman & Hiran Roy & M. Yunus Ali & Md Imtiaz Mostafiz, 2021. "Performance implications of export assistance: the mediating role of export entrepreneurship," Post-Print hal-03545902, HAL.
    9. Redwanur Rahman & Saleh Shahriar & Sokvibol Kea, 2019. "Determinants of Exports: A Gravity Model Analysis of the Bangladeshi Textile and Clothing Industries," FIIB Business Review, , vol. 8(3), pages 229-244, September.
    10. Matthew McCartney, 2016. "Costs, Capabilities, Conflict and Cash: The Problem of Technology and Sustainable Economic Growth in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(Special E), pages 65-98, September.
    11. Berliner, Daniel & Greenleaf, Anne & Lake, Milli & Noveck, Jennifer, 2015. "Building Capacity, Building Rights? State Capacity and Labor Rights in Developing Countries," World Development, Elsevier, vol. 72(C), pages 127-139.
    12. Matthew McCartney, 2015. "The Missing Economic Magic: The Failure of Trade Liberalization and Exchange Rate Devaluation in Pakistan, 1980–2012," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 20(Special E), pages 59-86, September.
    13. Grier, Kevin & Mahmood, Towhid & Powell, Benjamin, 2023. "Anti-sweatshop activism and the safety-employment tradeoff: Evidence from Bangladesh's Rana Plaza disaster," Journal of Economic Behavior & Organization, Elsevier, vol. 208(C), pages 174-190.
    14. Krishnendu Saha & Prasanta Kumar Dey & Eleni Papagiannaki, 2021. "Implementing circular economy in the textile and clothing industry," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1497-1530, May.
    15. Humayun Kabir & Myfanwy Maple & Md. Shahidul Islam & Kim Usher, 2022. "The Paradoxical Impacts of the Minimum Wage Implementation on Ready-made Garment (RMG) Workers: A Qualitative Study," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(2), pages 545-569, June.
    16. Muhammad Saddam Hussain, 2023. "Commitment or Conspiracy? A Historical Exploration of Freedom of Association in the Readymade Garment Industry of Bangladesh," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(6), pages 1820-1834, June.
    17. Mia Mahmudur RAHIM & Sk Samidul ISLAM, 2020. "Freedom of association in the Bangladeshi garment industry: A policy schizophrenia in labour regulation," International Labour Review, International Labour Organization, vol. 159(3), pages 423-446, September.
    18. Mahmudul Hasan Fouji & Imranul Hoque, 2021. "Supplier Internationalization Through Upgrading in Global Supply Chain: Evidence from the Garments Industry of Bangladesh," International Journal of Global Business and Competitiveness, Springer, vol. 16(2), pages 116-129, December.
    19. Mizanur Rahman & Takrima Sayeda, 2016. "The Effect of Integration with Global Apparel Value Chain," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 17(2), pages 248-270, September.

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