The Effect of Integration with Global Apparel Value Chain

Mizanur Rahman and Takrima Sayeda

South Asia Economic Journal, 2016, vol. 17, issue 2, 248-270

Abstract: This article estimates the effect of integration with global apparel value chain on performance of Bangladesh apparel firms. The study does it by estimating an augmented Cobb–Douglas production function. The findings show that both backward linkage with foreign suppliers of intermediate inputs and forward linkage with global retailers of apparels positively affect firms’ output and labour productivity. By contrast, backward linkages with local suppliers have adverse effects on firm performances. The findings imply that it is a firm’s integration with the global apparel value chain, not the conventional backward linkage with domestic suppliers, that defines success of Bangladesh apparel industry in a globalizing world.

Keywords: Apparel; global value chain; backward linkage; forward linkage; Bangladesh (search for similar items in EconPapers)
JEL-codes: D21 D24 L14 L23 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/1391561416650587 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:soueco:v:17:y:2016:i:2:p:248-270

DOI: 10.1177/1391561416650587

Access Statistics for this article

More articles in South Asia Economic Journal from Institute of Policy Studies of Sri Lanka
Bibliographic data for series maintained by SAGE Publications ().