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Trade Liberalisation, Manufacturing Growth and Employment in Bangladesh   
Trade Liberalisation, Manufacturing Growth
and Employment in Bangladesh
Mustafizur Rahman Wasel Bin Shadat Selim Raihan
Paperback Book (6" x 9") :   Pages : 220
2010  Edition   :  ISBN - 978-81-7188-819-1
Price : INR 595 / US $ 29.95
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The present volume makes an important contribution to the rich literature on impact of trade reforms on growth and employment by undertaking an indepth investigation into relevant issues in the context of the developing economy of Bangladesh. The study tracks and investigates the various phases of trade reforms pursued by Bangladesh over the past years. By applying appropriate analytical and estimation techniques, the study captures how and to what extent trade reforms have impacted on growth of manufacturing sector of the country during the various stages of the reforms and how employment scenarios have changed in labour-intensive and export-oriented sectors of the country over the corresponding periods as a consequence of the reforms. The book argues that further trade reforms should be guided by concerns of employment creation and should be tailored to the demands of accelerated industrial growth as Bangladesh enters into a heightened pace of global integration of her economy.



List of Tables, Figures, Boxes, Annexes and Annex Tables

List of Acronyms

1. Introduction

1.1 Rationale, Research Questions and Objectives of the Study

1.2 Focus of Study

1.3 Analytical Framework and Data

1.4 Limitations and Distinctive Features of the Study

1.5 Structure of the Report

2. Trade Liberalisation and Employment: A Review of Theory and Evidence

2.1 Trade Liberalisation: Employment Creator or Destructor

2.2 Impact of Trade Liberalisation on Wage Inequality

2.3 Impact of Trade Liberalisation on Bangladesh Economy: Evidence from Studies 

3. Trade Liberalisation in Bangladesh: Phases, Pace and Sequence.

3.1 Brief History of Trade Liberalisation in Bangladesh

3.2 Phases and Pace of Trade Liberalisation

3.2.1. Tariff Reform Indicators

3.2.2. Trade Related Indicators

3.2.3. Policy Related Indicators

3.3 Sequencing of Trade Liberalisation

3.3.1 Import Policies

3.3.2 Export Policies

3.3.3 Industrial Policy

3.4 Comparison with Rest of the World

3.5 Summary

4. Impact of Trade Liberalisation in Bangladesh at the Aggregate Level: An Analysis of LFS Data

4.1 Problems with LFS and CMI Data

4.2 Dynamics and Structural Changes in the Labour Market during Various Phases of Trade Liberalisation

4.3 Status of Employment

4.4 Unemployment and Underemployment

4.5 Gender Dimension of Employment: Female Participation Rate (FPR)

4.6 Real Wage Index and Labour Productivity Index at Aggregate Level 

5. An Analysis of Employment Situation in the Manufacturing Sector

5.1 Trade Reforms, ERP and Production Performance

5.2 Trade Reforms, Manufacturing Employment and Output

5.3 Analysis of Public and Private Enterprises

5.4 Profile of Manufacturing Sector at 2-Digit Level and Employment

5.5 Employment Scenario for Labour-intensive and Export-oriented Industries

5.6 Extent of Tariff Liberalisation for Pooled, Labour-intensive and Export-oriented Industries 

6. Impact of Trade Liberalisation on Labour Demand and Growth in the Manufacturing Industries of Bangladesh: An Econometric Investigation

6.1 Estimation of Production Function in the Manufacturing Industries of Bangladesh

6.1.1 The Model

6.1.2 Variables and Data Description

6.1.3 Estimation Strategy

6.1.4 Discussion on Results

6.2 Labour Demand Function

6.2.1 Background and Literature Review

6.2.2 The Model

6.2.3 Data, Variables and Estimation Strategy

6.2.4 Analysis of the Regression Results

7. Trade Liberalisation and Sectoral Labour Demand in Bangladesh: A Computable General Equilibrium Analysis

7.1 Methodology

7.1.1 The Bangladesh Social Accounting Matrix 2005

7.1.2 The CGE Model for Bangladesh Economy

7.2 Simulation Set-ups

7.2.1 Setting Up the Full Liberalisation Scenario

7.2.2 Setting Up the Partial Liberalisation Scenario

7.2.3 Setting Up the Rationalised Liberalisation Scenario

7.3 Simulation Outcomes

7.3.1 Macroeconomic Effects

7.3.2 Impact on Sectoral Prices and Output

7.3.3 Impact on Sectoral Labour Demand

7.4 Conclusion

8. Summary of Results and Policy Implications



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