Trade Liberalisation, Manufacturing Growth and Employment in Bangladesh

Mustafizur Rahman‚ Wasel Bin Shadat‚ Selim Raihan

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

 

 

References

 

Index