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Addressing Workers' Rights in the Textile and Apparel Industries: Consequences for the Bangladesh Economy

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  • Ahmed, Nazneen
  • Peerlings, Jack H.M.

Abstract

Summary This paper applies a CGE model to analyze the effects of better addressing worker's rights in Bangladesh's textile and apparel industries. Results show that an increased minimum wage for unskilled, low-, and medium-skilled workers has negative impacts for these workers in aggregate and also for the economy in terms of export, GDP, and welfare. This comes from the decrease in employment. However, labor productivity-increasing improvements in factory conditions and services to workers not only increase incomes of workers, but also welfare. Entrepreneurs also enjoy higher incomes, enabling them to pay for improving the work environment.

Suggested Citation

  • Ahmed, Nazneen & Peerlings, Jack H.M., 2009. "Addressing Workers' Rights in the Textile and Apparel Industries: Consequences for the Bangladesh Economy," World Development, Elsevier, vol. 37(3), pages 661-675, March.
    • Handle: RePEc:eee:wdevel:v:37:y:2009:i:3:p:661-675
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    References listed on IDEAS

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    1. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, September.
    2. Fernandes, Ana M., 2008. "Firm Productivity in Bangladesh Manufacturing Industries," World Development, Elsevier, vol. 36(10), pages 1725-1744, October.
    3. Arndt, Channing & Dorosh, Paul A. & Fontana, Marzia & Zohir, Sajjad & El-Said, Moataz & Lungren, Christen, 2002. "Opportunities and challenges in agriculture and garments: A general equilibrium analysis of the Bangladesh economy," TMD discussion papers 107, International Food Policy Research Institute (IFPRI).
    4. Mr. Montfort Mlachila & Yongzheng Yang, 2004. "The End of Textiles Quotas: A Case Study of the Impacton Bangladesh," IMF Working Papers 2004/108, International Monetary Fund.
    5. Stephanie Barrientos, 2000. "Globalization and ethical trade: assessing the implications for development," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(4), pages 559-570.
    6. Unknown, 2001. "General Discussion," Proceedings of the 6th Agricultural and Food Policy Systems Information Workshop, 2000: Trade Liberalization Under NAFTA: Report Card on Agriculture 16839, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
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    Cited by:

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    2. Md. Maruf Hossan Chowdhury & Nusrat Jusy Umme & Md. Nuruzzaman, 2018. "Strategies for Mitigating Supply-Side Barriers in the Apparel Supply Chain: A Study on the Apparel Industry of Bangladesh," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 19(1), pages 41-52, March.
    3. Lee, Jihyun & Lee, Yuri, 2015. "The interactions of CSR, self-congruity and purchase intention among Chinese consumers," Australasian marketing journal, Elsevier, vol. 23(1), pages 19-26.
    4. A S M Monjurul Hasan & Mohammad Rokonuzzaman & Rashedul Amin Tuhin & Shah Md. Salimullah & Mahfuz Ullah & Taiyeb Hasan Sakib & Patrik Thollander, 2019. "Drivers and Barriers to Industrial Energy Efficiency in Textile Industries of Bangladesh," Energies, MDPI, vol. 12(9), pages 1-19, May.
    5. Grier, Kevin & Mahmood, Towhid & Powell, Benjamin, 2023. "Anti-sweatshop activism and the safety-employment tradeoff: Evidence from Bangladesh's Rana Plaza disaster," Journal of Economic Behavior & Organization, Elsevier, vol. 208(C), pages 174-190.
    6. Cornelia Staritz, 2011. "Making the Cut? Low-Income Countries and the Global Clothing Value Chain in a Post-Quota and Post-Crisis World," World Bank Publications - Books, The World Bank Group, number 2547.

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