Productivity improvements in LIC manufacturing sectors

c. Tareq Salahuddin

c. Tareq Salahuddin

Multidimensional evidence from Bangladeshi garment factories

Dr Atonu Rabbani, Innovations for Poverty Action

Start: Jun 2014  |  End: Jun 2017

Research Councils UK project page

Manufacturing sectors in developing countries show a far greater dispersion in firm productivity and management practices than counterparts in high-income countries. Sustained increases in wages and employment creation depend on increases in productivity.

This project aims to deepen our understanding of the process of productivity improvement in manufacturing firms in low-income countries (LICs), and to gain insights as to why productivity and innovation lag.

The research will focus on the Bangladeshi Ready-made garment (RMG) sector, the largest source of urban employment in Bangladesh. The effects of a training program developed and offered by Solutions for Management International (S4Mi), a not-for-profit consulting firm established as a part of DFID's Responsible and Accountable Garment Sector (RAGS) programme will be studied. 

S4Mi and the participating factories will select a single pilot production line on which to focus and a random selection of pilot lines will provide a valid comparison group prior to the factory-wide rollout. We will also combine extremely detailed productivity analysis with innovative survey and interview data. The survey and interview data will provide a unique window onto the internal processes of change that accompany the transition.