The Relationship of the Macroeconomic Variables with the Growth of Garment Industry in Bangladesh

  • Sk. Alamgir Hossain Lecturer, Department of Finance, Faculty of Business Studies, Jagannath University, Dhaka-1100, BANGLADESH
  • K. M. Anwarul Islam Assistant Professor, Department of Business Administration, The Millennium University, Dhaka-1210, BANGLADESH
Keywords: Demutualization, Garment Industry, Macroeconomic Variables


In this research paper, we have tried to find out the relationship between the growth rate of garment industry and the macroeconomic variables. And for this we have conducted three types of analysis. First one is quantitative analysis; a second one is qualitative analysis, and the last one is a beta concept. Quantitative analysis has covered graphical presentation and multiple regression analysis. The graphical presentation just provides an overall idea about the relationship of variables, but it is an abstract concept. In case of regression analysis, we have used one dependent variable that is the growth rate of garment industry and seven independent variables those are growth rate of real GDP, the unemployment rate, inflation rate, interest rate, level of stock market, exchange rate. And stata-10 software has been used to run the regression model. After running the programmed it is seen that there have some econometric problems. By using the logarithm, we have solved those problems. A multiple regression analysis has been made to know the extent to which these variables affect the garment export growth rate. From that analysis, it has been found that about 70% variations in the growth rate of garments export can be defined by these variables. Then an equation for predicting future garments export has been constructed. Qualitative analysis has encompassed economic and political issues. After this, for knowing the individual effect of the variables, a beta concept has been employed and from that analysis it has been found that no variable affect garments export to a large extent. At the end of the analysis it can be said that, individual effect of the macroeconomic variables on the growth rate of garments export is not much but when they are combined, they can influence the garments export growth rate. As they are also related with each other which means change in one macroeconomic variable may change all the other variables. Therefore, a combined effect always remains. So, we can say that macroeconomic variables influence the garment industry of our country but not to a great extent.

JEL Classification Code: E60, M10, L67, O14   




Download data is not yet available.


Absar, S. S. (March 2000). Conditions, concerns and needs of garment workers in Bangladesh. Development Bulletin , 82-84.

Acevedo, L. G., Robertson, R., Frederick, S., Gamberoni, E., Abras, A. L., Savchenko, Y., et al. (2012). Sewing Success? Washington D.C.: The World Bank.

Ahmed, N. (2009). “Sustaining Ready-made Garment Exports from Bangladesh. Journal Of Contemporary Asia , 597-618.

Alam, K., Blanch, L., & Smith, A. (2011). War On Want. London: War on Want, 44-48 Shepherdess Walk, London N1 7JP, United Kingdom.

Ara, D. A., & Rahman, M. (2010, June 16). The Competitiveness and Future Challenges of Bangladesh in International Trade. Retrieved June 14, 2012, from

Arnold, J. (2010). Effects of Trade Logistics on the Strategy of the Garments Industry for Product and Market Diversification. Dhaka: World Bank.

B.Gowthaman, & Prasanna, R. (2007). Sector Specific Living Wage For Sri Lankan Apparel Industry Workers. Srilanka: Alarm.

BBS. (Bangladesh Progress at a Glance). Millenium Development Goals. Dhaka: Bangladesh Bureau of Statistics.

Berg, D. A., Hedrich, S., Sebastian, K., & Tochtermann, T. D. (2011). Bangladesh Ready-made Garments Landscapes: The Challenge of Growth. McKinsy & Company. Europe: McKinsy & Company.

Berman, J., & Pfleeger, J. (1997). Which industries are sensitive to business cycles? Monthly Labor Review , 19-25.

BGMEA. (2009, July 01). About us. Retrieved August 15, 2012, from Bangladesh Garment Manufacturers And Exporters Association (BGMEA):

BGMEA. (2009, July 01). News and Events. Retrieved 5 21, 2012, from BGMEA:

BKMEA. (2010-11). Appare Export Statistics of Bangladesh. Dhaka: BKMEA.

BKMEA. (2010, July 01). BKMEA At A Glance. Retrieved August 16, 2012, from BKMEA:

Bogdan, R. C., & Biklen, S. K. (1982). Qualitative research for education: An introduction to theory and methods. Boston: Allyn and Bacon Inc.

Bonoma, T. (1985). Case Research in Marketing: Opportunities, Problems, and a Process. Journal of Marketing Research , 28, 353-374.

Cenesizoglu, T. (2010). Size, Book-to-Market Ratio and Macroeconomic News. Montreal: Department of Finance, HEC Montreal, 3000.

Creswell, J. (1994). Research design, qualitative and quantitative approaches. California: Sage Publications.

Decorp, A. (1999). Triangulation in qualitative tourism research. Tourism Management, , 20, 157-161.

Domat, G., Glass, B., & Brown, D. (2012). The Apparel Industry: Jordan’s Comparative Advantage in International Trade. Jordan: Tufts University.

DOT (Department of Textiles). (2009). Survey of the Bangladesh Textile Industry to Assess the Requirement of Textile Technologists. Dhaka, Bangladesh: Department of Textiles.

European Commision. (2001). Guidebook for European Investors in Bangladesh. Dhaka: European Commision, Asian Investment Facility.

Evert, G. (2000). Qualitative Methods in Management Research (2nd ed.). London: Sage Publications.

Fischer, S. (2001). Growth, Macroeconomics, and Development. Massachussets: MIT Press.

Gephart, R. P. (2004). From the Editors – Qualitative research and the Academy of Management Journal. Academy of Management Journal , 47 (4), 454-462.

Haan, E. d., Koen, M., & Mthembu, N. (2002). garment production in Malawi. Durban: SOMO and Workers College.

Habib, M. R. (2009). Backward Linkages in Readymade Garment Industry of Bangladesh: Appraisal and Policy. Journal of Textile and Apparel, Technology and Management , 6 (2), 1-11.

Haider, Z. M. (2007). Competitiveness of the Bangladesh Ready-made Garment Industry in Major International Markets. Asia-Pacific Trade and Investment Review , 8-22.

Halfpenny, P. (1979). The analysis of qualitative data. Sociological Review (New series) , 27, 799-825.

Hoque, Z. (2006). Methodological issues in accounting research: Theories and methods. London: Spiramus Press Ltd.

Islam, Z. K. (2007). Bangladesh Garment Industry In Global Context, Finnish Perspective. Lahti University of Applied Sciences, Faculty of Business Studies. Lahti: Lahti University of Applied Sciences.

Iwan Hermawan. (2011). Analysis Of The Impact Of Macroeconomic Policies On Textile Industry And Its Products In Indonesia. Bulletin of Monetary, Economics and Banking , 357-390.

Khaled, S. M. (2011). Problems of Bangladesh Garments Sector and their Solution– An Islamic Perspective. Thoughts on Economics , 20 (03), 23-50.

Khosla, N. (2009, November 01). The ready-made garments industry in Bangladesh: A means to reducing gender-based social exclusion of women? Journal of International Women’s Studies , pp. 289-303.

King, N. (2004). Using interviews in Qualitative research, Essential Guide to qualitative Methods in Organisational Research. (C. Cassell, & G. Symon, Eds.) London : Sage publication .

Koyi, G. (2006). The Textile and Clothing Industry in Zambia. Friedrich-Ebert-Stiftung , 255-274.

Kvale, S. (1996). Interviews: An Introduction to Qualitative Research Interviewing. London: Sage Publications.

Lee, T. (1999). Using Qualitative Methods in Organizational Research. London : Sage Publications.

Maanen, V. (1998). Qualitative studies of Organisations. London : Sage Publications.

Marwaha, A. (2008). Impact of China on Indian Garment Industry. Nottingham: The University of Nottingham.

Mason, J. (2002). Qualitative Researching. London: Sage Publication.

McKinsey, &. C. (2011). Bangladesh's Ready-made Garments Landscape: The Challenge of growth. Dhaka: BGMEA.

Miles, M., & Huberman, A. (1994). Qualitative data analysis. London: Sage Publications.

Mirdha, R. U. (2012, January 01). Govt to fund training for garment workers. Retrieved 5 21, 2012, from The Daily Star:

Oppenheim, A. (2000). Questionnaire Design, Interviewing and Attitude Measurement. Newyork: Continuum.

Osman, A. S. (2012, June 25). Exporting garments. (M. Rahman, Interviewer)

Patton, M. Q. (1987). How to Use Qualitative Methods in Evaluation. California: Sage publications.

Quddus, Munir, & Rashid, R. (2000). Entrepreneurs and Economic Development: The Remarkable Story of Garment Exports from Bangladesh. Dhaka: The University Press Limited.

Rahman, M., & Anwar, A. (2006). Bangladesh Apparels Export to the US Market: An Examination of Her Competitiveness vis-Ã -vis China. Centre for Policy Dialogue.

Raihan, M. S. (1999). The Textile and Clothing Industry of Bangladesh: In a Changing World Economy. Dhaka: Centre for Policy Dialogue.

RASHID, M. A. (2006). Rise of Readymade Garments Industry in Bangladesh: Entrepreneurial Ingenuity Or Public Policy. Dhaka: Bangladesh Institute for Development Studies.

Razzaue, A., & Eusuf, A. (2007). Trade, Development and Poverty Linkage: A Case Study of Ready Made Garment Industry in Bangladesh. Unnayan Shamannay , 4-8.

Rubin, H. a. (1995). Qualitative Interviewing: The art of hearing data. Thousand Oaks, CA: Sage publications.

Saheed, H. (2008). Prospects for the Textile and Garment Industry in Bangladesh. Textile Outlook International (135), 12–48.

Sapsford, R., & Jupp, V. (2006). Data Collection and Analysis. London: Sage Publications.

Seale, C. (1999). Quality in Qualitative Research. Qualitative enquiry , 4, 465-478.

Silverman, D. (2000). Doing Qualitative Research. London: Sage Publications.

Unnayan Onneshon. (2010). Bangladesh Economic Update: Growth, Tax, Inflation and Consumers. Dhaka: Unnayan Onneshon.

Wikipedia. (2012, July 12). Bangladesh. Retrieved July 15, 2012, from Wikipedia:

Wikipedia. (2012, June 21). Bangladesh Textile Industry. Retrieved July 15, 2012, from Wikipedia:

World Bank. (2005). End of MFA Quotas—Key Issues and Strategic Options for Bangladesh Readymade Garment Industry. Dhaka: Poverty Reduction and Economic Management Unit, World Bank.

Yamagata, T. (2007, April 04). Prospects for Development of the Garment Industry in Developing Countries: What Has Happened Since the MFA Phase-Out? Retrieved June 14, 2012, from

Younus, M., & Yamagata, T. (2012). Dynamics of the Garment Industry in Low-Income Countries: Experience of Asia and Africa(Interim Report). IDE-JETRO. Japan: IDE-JETRO.


How to Cite
Hossain, S. A. and Islam, K. M. A. (2015) “The Relationship of the Macroeconomic Variables with the Growth of Garment Industry in Bangladesh”, Global Disclosure of Economics and Business, 4(1), pp. 63-78. Available at: (Accessed: 20July2019).