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BDS Current Issue Volume XLIlI, March- June 2020, Number 1&2

Foreign Direct Investment in the Readymade Garment Sector of Bangladesh: Macro and Distributional Implications

Author: SHARIF M. HOSSAIN AND NOBUHIRO HOSOE

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Bangladesh, a labour-abundant country, benefits from foreign direct investment (FDI), as it is considered to be a supplement to domestic investment for this capital-scarce economy. This paper measures the impacts of an FDI increase in the RMG sector on the macroeconomy in Bangladesh and on the welfare of households, which are heterogeneous, especially in income sources, using a general equilibrium framework. Simulation results show that an increase in FDI promotes both output and exports in the RMG sector. However, because of the competition between MNEs and domestic firms, the output of domestic firms would fall slightly. Scrutinizing the welfare effects among household groups, we find that the benefits of FDI-induced growth would affect all household groups unevenly. We also demonstrate that the benefits could be shared equitably among household groups with skill development programmes targeted at the adversely affected household groups.

Cattle Population in India: Do Institutions Matter?

Author: KAZI IQBAL, KAZI ALI TOUFIQUE AND MD. WAHID FERDOUS IBON

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We use Indian livestock census data to show that states with more stringent slaughter laws perform better in terms of cattle population growth than states where slaughter acts are more enabling.  We also show that the growth in cattle population is caused by an increase in female crossbred cattle and more so in the states where slaughter rules are very restrictive. Despite a complete ban on cow slaughter in some states, they do not show any balance between male and female cows. These results are non-intuitive and have strong political and policy implications but require further investigation.

Analysis of Achievement of Selected MDGs: A Comparative Study between India and Bangladesh

Author: DEBANJANA ROY AND SOUMYENDRA KISHORE DATTA

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The paper focuses on the relative achievement of five major Millennium Development Goals (MDGs) for India and Bangladesh. This is done by constructing indices with the help of the UNDP goal-post method and Principal Component Analysis (PCA) technique.  From the analysis, it is revealed that these two countries have more or less successfully performed to bring about positive reforms in the case of hunger alleviation, the progress of primary education, improvement in child and maternal health, establishing better environment against sex discrepancy, etc. It also identifies the policies and programmes set by the two countries for the attainment of the respective goals. The paper shows that though these two developing nations performed quite satisfactorily to deal with deprivation afflicted issues and address the prevailing status of socio-economic malaises, the achievements were sometimes not continuous and marked by undulations. 

SME Development, Inclusive Growth, and Poverty Alleviation in Bangladesh

Author: MOHAMMAD MOHIDUL ISLAM

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The massive involvement of SMEs in economic development is considered one of the important prerequisites for inclusive growth in developing countries. This paper aims to assess the performance of SMEs towards economic development in Bangladesh based on the research question of whether SMEs have a significant influence on economic growth and the alleviation of poverty. Annual time-series data from 1996 to 2017 have been used to carry out the empirical analysis. The econometric analysis has been performed employing OLS and 2SLS techniques to investigate the impact of SMEs on economic growth and poverty alleviation. The results of the empirical analyses show that there is an economic linkage between SME development, economic growth, and the incidence of poverty. Even though such empirical relationships are not found to be statistically well justified, an increase in the percentage share of SMEs expansion has a positive effect on economic growth, which in turn, can alleviate poverty in Bangladesh. The findings of the study suggest that in light of economic theory, SME development is implicitly essential for ensuring inclusive growth and consequent poverty alleviation.

Traditional Society in South-Eastern Nigeria: Implications for Women's Health

Author: CAROLINE OKUMDI MUOGHALU AND CHIEDU AKPORARO ABRIFOR

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Property in Igbo traditional land and culture refers to wealth in the forms of houses, lands, money/cash, fruit trees and animals. These are transferred from the father to his children at the man's death. Property inherited from the family usually forms part of a person's wealth in Nigeria. However, in Anambra, Igbo, women are not allowed to inherit property either from their father or their husbands. Under this arrangement, a woman is seen as an inheritable property and, therefore, not expected to own properties. The paper examines the practice of women as inheritable property of the Anambra, Igbo; analyses how these practices have impacted women's health; and ascertains whether there have been changes in these practices. The paper concludes that women as inheritable property impoverishes women and constitutes a barrier to women attaining their full potentials in Igboland, which has serious implications for their health.

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