Textile and Apparel Industries

Revealed Comparative Advantage of Bangladesh Readymade Garments Industry

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Abstract

Bangladesh is the second-largest readymade garments (RMG) exporting nation in the world. The RMG industry constitutes a substantial portion of Bangladesh’s total exports, enhancing its economic standing on the global stage. This study investigates the export competitiveness of Bangladesh’s RMG industry, identifying the specific product categories that confer a comparative advantage to the nation. Revealed Comparative Advantage (RCA) and Normalized Revealed Comparative Advantage (NRCA) are calculated at two-and four-digit levels of RMG product codes within the Harmonized System (HS) from 2011 to 2020. Twenty-nine out of the thirty-four product codes at four-digit levels are identified as holding a comparative advantage throughout the ten-year timeframe. The rest of the product codes are found to be contributing negatively to the country’s export competitiveness. The study findings will inspire necessary measures from industry stakeholders that will improve the export performance within those product codes where the country is losing its export competency.

Keywords: Export competitiveness, RCA, NRCA, RMG industry, Bangladesh

How to Cite:

Hasan, M. & Das, D., (2024) “Revealed Comparative Advantage of Bangladesh Readymade Garments Industry”, International Textile and Apparel Association Annual Conference Proceedings 80(1). doi: https://doi.org/10.31274/itaa.17380