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The Effect of Integration with Global Apparel Value Chain: The Case of Bangladesh Apparel Industry

42 Pages Posted: 5 Mar 2009 Last revised: 28 Apr 2016

Mizanur Rahman

University of Dhaka; Asian Development Bank Institute

Takrima Sayeda

University of Dhaka

Date Written: September 30, 2014

Abstract

This paper estimates the effect of integration with global apparel value chain on performance of Bangladesh apparel firms. The study does it by estimating an augmented Cobb-Douglas production function. The findings show that both backward linkage with foreign suppliers of intermediate inputs and forward linkage with foreign buyers of finished apparels positively affect firms’ output and labour productivity. By contrast, backward linkage with local suppliers negatively affects firms’ output and labour productivity. The findings imply that it is a firm’s integration with the global apparel value chain, not the conventional backward linkage with domestic suppliers,that defines success of Bangladesh apparel industry.

Keywords: Apparel, global value chain, backward linkage, forward linkage, Bangladesh

JEL Classification: D21, D24, L14, L23

Suggested Citation

Rahman, Mizanur and Sayeda, Takrima, The Effect of Integration with Global Apparel Value Chain: The Case of Bangladesh Apparel Industry (September 30, 2014). Available at SSRN: https://ssrn.com/abstract=1354046 or http://dx.doi.org/10.2139/ssrn.1354046

Mizanur Rahman (Contact Author)

University of Dhaka ( email )

Department of Accounting & Information Systems
University of Dhaka
Dhaka, 1000
Bangladesh
+88 01817684202 (Phone)
+88 2 8615583 (Fax)

HOME PAGE: http://www.acmd.com.bd

Asian Development Bank Institute ( email )

Kasumigaseki Building 8F 3-2-5
Kasumigaseki, Chiyoda-ku
Tokyo, 100-6008
Japan

HOME PAGE: http://www.adbi.org

Takrima Sayeda

University of Dhaka ( email )

University of Dhaka
Ramna, Dhaka, 1000
Bangladesh

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