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Shifting trade preferences and value chain impacts in the Bangladesh textiles and garment industry

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  • Louise Curran
  • Khalid Nadvi

Abstract

This article contributes to the debate on the key factors shaping global value chains in the garment sector by focusing on one aspect: namely trade regimes and their related ‘rules of origin’. We study Bangladesh, the leading least developed global garment manufacturer, to assess how changes in the European Union’s regime for preferential market access affect the trade profile, and upgrading prospects, of Bangladesh’s garment industry. We find that shifting trade preferences play a key role in determining structural transformations within the industry. This calls for more careful consideration of trade regimes within GVC analysis.

Suggested Citation

  • Louise Curran & Khalid Nadvi, 2015. "Shifting trade preferences and value chain impacts in the Bangladesh textiles and garment industry," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(3), pages 459-474.
    • Handle: RePEc:oup:cjrecs:v:8:y:2015:i:3:p:459-474.
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    References listed on IDEAS

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    5. Olivier Cadot & Calvin Djiofack & Jaime de Melo, 2008. "Trade Preferences and Rules of Origin: The Economic Partnership Agreements' Prospects for West and Central Africa," Revue d’économie du développement, De Boeck Université, vol. 16(5), pages 93-135.
    6. de Melo, Jaime & Portugal-Perez, Alberto, 2008. "Rules of Origin, Preferences and Diversification in Apparel: African Exports to the US and to the EU," CEPR Discussion Papers 7072, C.E.P.R. Discussion Papers.
    7. 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.
    8. Gasiorek, Michael & Holmes, Peter & Rollo, Jim & Wang, Zhenkun & Gonzalez, Javier Lopez & Parra, Maximiliano Mendez & Maliszewska, Maryla & Paczynski, Wojtek & Cirera, Xavier & Willenbockel, Dirk & Fo, 2010. "Mid-term Evaluation of the EU’s Generalised System of Preferences," Conference papers 331999, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
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    Cited by:

    1. Herr, Hansjörg & Teipen, Christina & Dünhaupt, Petra & Mehl, Fabian, 2020. "Wirtschaftliche Entwicklung und Arbeitsbedingungen in globalen Wertschöpfungsketten," Working Paper Forschungsförderung 175, Hans-Böckler-Stiftung, Düsseldorf.
    2. Sytsma, Tobias, 2019. "Rules of Origin Liberalization with Multi-Product Firms: Theory and Evidence from Bangladeshi Apparel Exporters," MPRA Paper 95956, University Library of Munich, Germany.
    3. Kiyoyasu Tanaka, 2021. "The European Union's reform in rules of origin and international trade: Evidence from Cambodia," The World Economy, Wiley Blackwell, vol. 44(10), pages 3025-3050, October.
    4. Mostafiz, Md Imtiaz & Musteen, Martina & Saiyed, Abrarali & Ahsan, Mujtaba, 2022. "COVID-19 and the global value chain: Immediate dynamics and long-term restructuring in the garment industry," Journal of Business Research, Elsevier, vol. 139(C), pages 1588-1603.
    5. Elwyn Davies & Lars Nilsson, 2020. "A comparative analysis of EU and US trade policies towards least developed countries and the African Growth and Opportunity Act beneficiaries," Development Policy Review, Overseas Development Institute, vol. 38(5), pages 613-629, September.
    6. Pasquali, Giovanni & Krishnan, Aarti & Alford, Matthew, 2021. "Multichain strategies and economic upgrading in global value chains: Evidence from Kenyan horticulture," World Development, Elsevier, vol. 146(C).
    7. Tobias Sytsma, 2021. "Rules of origin and trade preference utilization among least developed countries," Contemporary Economic Policy, Western Economic Association International, vol. 39(4), pages 701-718, October.
    8. Dünhaupt, Petra & Herr, Hansjörg & Mehl, Fabian & Teipen, Christina, 2020. "Opportunities for development through integration in global value chains? A cross-sectoral and cross-national comparison," IPE Working Papers 140/2020, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    9. Tanaka, Kiyoyasu & Fukunishi, Takahiro, 2022. "Rules of origin and exports in developing economies: The case of garment products," Journal of Asian Economics, Elsevier, vol. 82(C).
    10. Ari Van Assche & Byron Gangnes, . "Global value chains and the fragmentation of trade policy coalitions," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    11. Herr, Hansjörg & Dünhaupt, Petra, 2019. "Global Value Chains in economic development," IPE Working Papers 124/2019, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    12. John Pickles & Leonhard Plank & Cornelia Staritz & Amy Glasmeier, 2015. "Trade policy and regionalisms in global clothing production networks," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(3), pages 381-402.

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