COMPETITION AND EXPORT GROWTH OF READYMADE GARMENTS OF BANGLADESH IN THE UNITED STATES MARKET: AN EMPIRICAL ANALYSIS

Mohammad Ali, Wang Qun, Md Ekram Hossain

Abstract


This paper attempts to investigate the export growth and competition of Bangladesh readymade garments in the United States market compared with other top competitors during the 2013-2017 period. From the analysis, the export growth indices exposed that out of 17 product categories of HS61, Bangladesh stated a positive export growth in 12 product categories and rest of the 5 product categories revealed a negative export growth in the United States market. On the other hand, out of 17 product categories of HS62, Bangladesh revealed a positive export growth in 9 product categories, while rest of the 8 product categories stated a negative export growth in the United States market. Furthermore, Spearman’s rank correlation coefficient (rs) test for the mentioned top competitors in the United States market exposed that the 17 product categories of HS61 Bangladesh exhibited higher competition with Sri Lanka, India, Mexico, and Indonesia; modest competition Vietnam; lower competition with China, and Cambodia; trade complementariness with Italy, and Pakistan. Moreover, the 17 product categories of HS62 exhibited modest competition with Mexico, Pakistan, and Cambodia; low competition with China, Vietnam, and Italy; trade complementariness with India, Indonesia, and Sri Lanka. In addition, it is observed that all the countries for product group HS61 & HS62 face pretty high Equivalent Ad Valorem Tariff in the United States except Mexico. Furthermore, the findings are expected to contribute further development and policy-making in the readymade garments industry of the concern countries as well as for the concerned stakeholders of this industry.

 

JEL: B17, F14, F17, F18, P45

 

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readymade garments (RMG), export growth, United States market, competition, Bangladesh

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References


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