An Analysis of the Change and Volatility in the Apparel Industry of Bangladesh after MFA Era

Redwan Ahmed

Abstract


It is an attempt to measure the changes and instabilities in employment and number of apparel factory in Bangladesh after MFA phase out based on secondary data from 1998 to 2011 using different statistical techniques. Though previous studies predicted that the country would experience a significant fall in all of the apparel export, employment and number of factory due to quota facilities elimination, the forecasting proved to be untrue finally. RMG export, employment and number of factory increased significantly. The growth in these three areas improved notably in ATC abolition era. Though instability in garment industry was common in Bangladesh, the sector has been surprisingly more stable during the post MFA Era. This astonishing and overwhelming performance of Bangladesh apparel sector could be attributed to adopting Lean Manufacturing Techniques, formation of Industrial Police Force, political stability, setting up new Captive Power Plants and getting GSP facilities after quota facilities elimination.

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