IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v37y2009i3p661-675.html
   My bibliography  Save this article

Addressing Workers' Rights in the Textile and Apparel Industries: Consequences for the Bangladesh Economy

Author

Listed:
  • Ahmed, Nazneen
  • Peerlings, Jack H.M.

Abstract

Summary This paper applies a CGE model to analyze the effects of better addressing worker's rights in Bangladesh's textile and apparel industries. Results show that an increased minimum wage for unskilled, low-, and medium-skilled workers has negative impacts for these workers in aggregate and also for the economy in terms of export, GDP, and welfare. This comes from the decrease in employment. However, labor productivity-increasing improvements in factory conditions and services to workers not only increase incomes of workers, but also welfare. Entrepreneurs also enjoy higher incomes, enabling them to pay for improving the work environment.

Suggested Citation

  • Ahmed, Nazneen & Peerlings, Jack H.M., 2009. "Addressing Workers' Rights in the Textile and Apparel Industries: Consequences for the Bangladesh Economy," World Development, Elsevier, vol. 37(3), pages 661-675, March.
    • Handle: RePEc:eee:wdevel:v:37:y:2009:i:3:p:661-675
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-750X(08)00228-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Arndt, Channing & Dorosh, Paul A. & Fontana, Marzia & Zohir, Sajjad & El-Said, Moataz & Lungren, Christen, 2002. "Opportunities and challenges in agriculture and garments: a general equilibrium analysis of the Bangladesh economy," TMD discussion papers 107, International Food Policy Research Institute (IFPRI).
    2. Fernandes, Ana M., 2008. "Firm Productivity in Bangladesh Manufacturing Industries," World Development, Elsevier, vol. 36(10), pages 1725-1744, October.
    3. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, January.
    4. Mr. Montfort Mlachila & Yongzheng Yang, 2004. "The End of Textiles Quotas: A Case Study of the Impacton Bangladesh," IMF Working Papers 2004/108, International Monetary Fund.
    5. Stephanie Barrientos, 2000. "Globalization and ethical trade: assessing the implications for development," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(4), pages 559-570.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mia Mahmudur Rahim, 2017. "Improving Social Responsibility in RMG Industries Through a New Governance Approach in Laws," Journal of Business Ethics, Springer, vol. 143(4), pages 807-826, July.
    2. 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.
    3. Cornelia Staritz, 2011. "Making the Cut? Low-Income Countries and the Global Clothing Value Chain in a Post-Quota and Post-Crisis World," World Bank Publications - Books, The World Bank Group, number 2547.
    4. Md. Maruf Hossan Chowdhury & Nusrat Jusy Umme & Md. Nuruzzaman, 2018. "Strategies for Mitigating Supply-Side Barriers in the Apparel Supply Chain: A Study on the Apparel Industry of Bangladesh," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 19(1), pages 41-52, March.
    5. Lee, Jihyun & Lee, Yuri, 2015. "The interactions of CSR, self-congruity and purchase intention among Chinese consumers," Australasian marketing journal, Elsevier, vol. 23(1), pages 19-26.
    6. A S M Monjurul Hasan & Mohammad Rokonuzzaman & Rashedul Amin Tuhin & Shah Md. Salimullah & Mahfuz Ullah & Taiyeb Hasan Sakib & Patrik Thollander, 2019. "Drivers and Barriers to Industrial Energy Efficiency in Textile Industries of Bangladesh," Energies, MDPI, vol. 12(9), pages 1-19, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Khondker, Bazlul H. & Raihan, Selim, 2004. "Welfare and Poverty Impacts of Policy Reforms in Bangladesh: A General Equilibrium Approach," Centre on Regulation and Competition (CRC) Working papers 30588, University of Manchester, Institute for Development Policy and Management (IDPM).
    2. Jongeneel, Roelof A. & Ge, Lan, 2005. "Explaining Growth in Dutch Agriculture: Prices, Public R&D, and Technological Change," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24573, European Association of Agricultural Economists.
    3. Paul, Saumik, 2019. "A Decline in Labor's Share with Capital Accumulation and Complementary Factor Inputs: An Application of the Morishima Elasticity of Substitution," IZA Discussion Papers 12219, Institute of Labor Economics (IZA).
    4. Alessandro Arrighetti, 2009. "Market Imperfections and Fair Trade," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
    5. Massimo Filippini & Cornelia Luchsinger, 2007. "Economies of scale in the Swiss hydropower sector," Applied Economics Letters, Taylor & Francis Journals, vol. 14(15), pages 1109-1113.
    6. Peterson, Jeffrey M. & Boisvert, Richard N. & de Gorter, Harry, 1999. "Multifunctionality and Optimal Environmental Policies for Agriculture in an Open Economy," Working Papers 127701, Cornell University, Department of Applied Economics and Management.
    7. Cai, Yiyong & Newth, David & Finnigan, John & Gunasekera, Don, 2015. "A hybrid energy-economy model for global integrated assessment of climate change, carbon mitigation and energy transformation," Applied Energy, Elsevier, vol. 148(C), pages 381-395.
    8. V. Vandenberghe, 2018. "The Contribution of Educated Workers to Firms’ Efficiency Gains: The Key Role of Proximity to the ‘Local’ Frontier," De Economist, Springer, vol. 166(3), pages 259-283, September.
    9. Tchale, H. & Sauer, J., . "Soil Fertility Management and Agricultural Productvity in Malawi," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 42.
    10. David Van Dijcke, 2022. "On the Non-Identification of Revenue Production Functions," Papers 2212.04620, arXiv.org, revised May 2024.
    11. Margarita Genius & Spiro Stefanou & Vangelis Tzouvelekas, 2009. "Productivity Growth and Efficiency under Leontief Technology: An Application to US Steam-Electric Power Generation Utilities," Working Papers 0913, University of Crete, Department of Economics.
    12. Shumway, C. Richard & Davis, George C., 2001. "Does consistent aggregation really matter?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), pages 1-34.
    13. Mehdi Farsi & Aurelio Fetz & Massimo Filippini, 2007. "Benchmarking and Regulation in the Electricity Distribution Sector," CEPE Working paper series 07-54, CEPE Center for Energy Policy and Economics, ETH Zurich.
    14. Arnade, Carlos A., 1992. "Productivity of Brazilian Agriculture: Measurement and Uses," Staff Reports 278673, United States Department of Agriculture, Economic Research Service.
    15. Coleman, Jane A. & Shaik, Saleem, 2009. "Time-Varying Estimation of Crop Insurance Program in Altering North Dakota Farm Economic Structure," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49516, Agricultural and Applied Economics Association.
    16. Cherkashin, Ivan & Demidova, Svetlana & Kee, Hiau Looi & Krishna, Kala, 2015. "Firm heterogeneity and costly trade: A new estimation strategy and policy experiments," Journal of International Economics, Elsevier, vol. 96(1), pages 18-36.
    17. Renwick, Alan W. & Revoredo-Giha, Cesar & Reader, Mark A., 2005. "Uk Sugar Beet Farm Productivity Under Different Reform Scenarios: A Farm Level Analysis," Environmental Economy and Policy Research Discussion Papers 31936, University of Cambridge, Department of Land Economy.
    18. Bailey, Alastair & Irz, Xavier T. & Balcombe, Kelvin George, 2003. "An Appliation Of The Stochastic Latent Variable Approach To The Correction Of Sector Level Tfp Calculations In The Face Of Biased Technological Change," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25842, International Association of Agricultural Economists.
    19. Lofgren, Hans & Robinson, Sherman, 1997. "The mixed-complementary approach to specifying agricultural supply in computable general equilibrium models:," TMD discussion papers 20, International Food Policy Research Institute (IFPRI).
    20. Lisa CHAUVET & Alvaro DE MIGUEL TORRES & Alexa TIEMANN, 2018. "Electricity and manufacturing firm profits in Myanmar," Working Papers P214, FERDI.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:37:y:2009:i:3:p:661-675. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.