The article attempts to review systematically the evidences on investment, employment and value added in Bangladesh manufacturing sector relating to the last decade. It also presents an independent estimate of manufacturing investment and value added for 1987/88 based on enterprise level survey.

It has been established that both public and private manufacturing investment and value added virtually stagnated, if not declined, in absolute and relative terms during the eighties. However, during this period employment in manufacturing sector recorded a rise. This apparently conflicting picture of stagnating investment and value added levels and rising employment scenario is partly explained by incomplete assessment of the fist two parameters, which was also indicated by the authors’ independent estimates. The evidences quite convincingly project a static picture of the ‘residual’ public sector following denationalisation measures of the early eighties. Within the private sector, the observed growth in employment is attributable mainly to the informal sector. The evidence seems suggestive of static or perhaps declining productivity levels although no firm conclusions can be drawn in this respect in view of the limitations of the data sources.