Bangladesh Textile Industry Case

Title: The Trade Performance of Bangladesh in Clothing

Name of the Authors and Address

Name

Present Status

Mohammad Masudur Rahman

Ph.D Candidate Dept. of Finance, Xiamen University Room 806, Overseas Education Service Centre, Xiamen University, China. Phone: 0086-0592-2184800 or 0086-013950178001 Email: masud611@hotmail.com

Prof. Dr. Zhenlong Zheng

Professor, Dept. of Finance, Xiamen University, Fujian Province, China Phone: 0086-0592-5920921 Fax: 0086-0592-5920923 Email: zlzheng@xmu.edu.cn Website:http://efinance.nease.net

Laila Arjuman Ara

Ph.D Candidate Dept. of Finance, Xiamen University, China Email: lailamolly2003@yahoo.com

Title: The Trade Performance of Bangladesh in Clothing

Abstract We examine the impact of the trade liberalization on the textiles and clothing industry in different regions based on an applied general equilibrium model using the Trade Analysis System (TAS), the COMTRADE database of the United Nations Statistics Division (UNSD). We also examine the competitive positions of Bangladesh and selected developing countries which are competitors of Bangladesh in textiles and clothing. We found that the USA market is more competitive and volatile, compared to the European market and the major exporting countries are China, Mexico, Philippines, Hong Kong, Sri Lanka, Pakistan, Thailand, Malaysia, India, Indonesia, Taiwan, Korea Republic, and Bangladesh also. These are the main competitor country for Bangladesh.

Keywords: Kendall coefficient of Concordance (KCC); Herfindahl-Hirshman Index (HHI); Export Similarity Index (ESI); Revealed Comparative Advantage (RCA); Textile and Clothing

1. Introduction

The WTO Agreement on Textiles and Clothing (ATC) succeeds the Multi- Fibre Arrangement (MFA) with the ultimate objective of putting in place a market driven global trading regime in textiles and clothing. The ATC calls for the gradual elimination of restrictive trade practices, such as the MFA and the complete integration of the textiles...