Abstract
This study considers the sourcing, production and distribution channels of the textile and garment industry in Bangladesh to address structural changes over time. Mass use of traditional garments, dependency on tailoring system and increase in demand of cheap garment products generate less change in the down-stream section’s structure of the domestic sector. However, closure/privatization of state owned textile firms and entrance of new private-owned firms contribute to change the up-stream section’s structure of the domestic sector. The export sector of the industry has been experiencing more changes in its structure compared to domestic counterpart over the time period. The price cutting trend of garment products in international markets, elimination of the export quota system and compliance issue are creating pressures on the export sector. Bangladeshi firms have been responding by forming formal/informal groups, initiating linkage expansion and increasing inter and intra-industry coordination to face the challenges. This study finds the initiation of external demand driven positive moves in the industry structure. Degree of backward linkage expansion, openness to Foreign Direct Investment, business environment, initiatives for risk management and market expansion will determine the future structure of the industry.
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