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An Inquiry into the Rapid Growth of the Garment Industry in Bangladesh

Author

Listed:
  • Khondoker Abdul Mottaleb

    (Civil Service College)

  • Tetsushi Sonobe

    (National Graduate Institute for Policy Studies)

Abstract

The export-oriented garment industry in Bangladesh has grown rapidly for the last three decades and now ranks among the largest garment exporters in the world. While its early success is attributed to the initial technology transfer from South Korea, such a one-time infusion of knowledge alone is insufficient to explain the sustained growth for three decades. This paper uses primary data collected from knitwear manufacturers and garment traders to explore the process of the continuous learning of advanced skills and know-how. It finds, among other things, that the high profitability of garment manufacturing due to the initial infusion of specific human capital attracted a number of highly educated entrepreneurs to the industry, that the division of labor between manufacturers and traders has facilitated the expansion of the industry, and that enterprise growth has lasted long because of the continuous learning from abroad by the highly educated entrepreneurs.

Suggested Citation

  • Khondoker Abdul Mottaleb & Tetsushi Sonobe, 2011. "An Inquiry into the Rapid Growth of the Garment Industry in Bangladesh," GRIPS Discussion Papers 11-10, National Graduate Institute for Policy Studies.
  • Handle: RePEc:ngi:dpaper:11-10
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Keshab Raj Bhattarai, 2016. "Economic Growth and Development in India and SAARC Countries," EcoMod2016 9631, EcoMod.
    2. Seymour, Gregory & Floro, Maria S., 2016. "Identity, household work, and subjective well-being among rural women in Bangladesh," IFPRI discussion papers 1580, International Food Policy Research Institute (IFPRI).
    3. Girum Abebe & Tetsushi Sonobe, 2012. "Management Practices, Self-Selection into Management Training Participation, and Training Effects in the Garment Industry in Ethiopia," GRIPS Discussion Papers 11-23, National Graduate Institute for Policy Studies.
    4. Justin Yifu Lin, 2012. "From Flying Geese To Leading Dragons: New Opportunities and Strategies for Structural Transformation in Developing Countries," Global Policy, London School of Economics and Political Science, vol. 3(4), pages 397-409, November.
    5. Babur Wasim Arif & Tetsushi Sonobe, 2012. "Virtual Incubation in Industrial Clusters: A Case Study in Pakistan," Journal of Development Studies, Taylor & Francis Journals, pages 377-392.
    6. Tetsushi Sonobe & Yuki Higuchi & Keijiro Otsuka, 2012. "Productivity Growth and Job Creation in the Development Process of Industrial Clusters," GRIPS Discussion Papers 11-22, National Graduate Institute for Policy Studies.
    7. Khondoker Abdul Mottaleb & Kaliappa P. Kalirajan, 2014. "Determinants Of Labor-Intensive Exports By The Developing Countries: A Cross Country Analysis," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 59(05), pages 1-22.
    8. Greg Seymour & Maria S. Floro, 2016. "Identity, Household Work, and Subjective Well-Being among Rural Women in Bangladesh," Working Papers id:11520, eSocialSciences.
    9. Ken-ichi Hashimoto & Ryonghun Im, 2016. "Bubbles and unemployment in an endogenous growth model," Oxford Economic Papers, Oxford University Press, pages 1084-1106.
    10. Otsuka, Keijiro & Sonobe, Tetsushi, 2011. "A cluster-based industrial development policy for low-income countries," Policy Research Working Paper Series 5703, The World Bank.
    11. Hosono, Akio, 2013. "Industrial Strategy And Economic Transformation:," Working Papers 1002, JICA Research Institute.
    12. Roberto Leon-Gonzalez, 2014. "Efficient Bayesian Inference in Generalized Inverse Gamma Processes for Stochastic Volatility," Working Paper series 19_14, Rimini Centre for Economic Analysis.
    13. Tetsushi Sonobe & Keijiro Otsuka, 2012. "The Role of Training in Fostering Cluster-Based MSE Development," GRIPS Discussion Papers 12-14, National Graduate Institute for Policy Studies.
    14. Florencia Torche & Luis F. Lopez-Calva, 2013. "Stability and Vulnerability of the Latin American Middle Class," Oxford Development Studies, Taylor & Francis Journals, pages 409-435.
    15. Tomoko Hashino & Keijiro Otsuka, 2013. "Expansion and Transformation of the Export-Oriented Silk Weaving District: The Case of Fukui in Japan from 1890 to 1919," Discussion Papers 1303, Graduate School of Economics, Kobe University.
    16. Sonobe, Tetsushi & Higuchi, Yuki & Otsuka, Keijiro, 2012. "Productivity growth and job creation in the development process of industrial clusters," Policy Research Working Paper Series 6280, The World Bank.
    17. Higuchi, Yuki & Nam, Vu Hoang & Sonobe, Tetsushi, 2015. "Sustained impacts of Kaizen training," Journal of Economic Behavior & Organization, Elsevier, pages 189-206.
    18. Girum Abebe & Florian Schaefer, 2014. "High Hopes and Limited Successes: Experimenting with Industrial Polices in the Leather Industry in Ethiopia," Working Papers 011, Ethiopian Development Research Institute.
    19. Dan PIRLOGEANU & Mihaela PANAIT (TANASE), 2017. "The Impact Of Foreign Direct Investments On The Small And Medium Sized Enterprises In Romania," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, pages 119-128.

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