Abstract
Bangladesh’s partial deviation from the classical ST path generates concerns that Bangladesh is precluding itself from benefitting fully from the manufacturing sector’s ability to raise overall productivity and employment. The informality in both industry and services remains widespread with a strong gender dimension. The challenge is to ensure a more inclusive ST which is complex in Bangladesh due to high dominance of nontradable services and limited availability of skilled workers for tradable services. For Bangladesh, the aim should be to skillfully manage the ‘developer’s dilemma’ of achieving both ST to increase productivity and inclusive growth to reduce poverty and arrest the rising trend of inequality. A well-articulated domestic policy regime will play the critical role in transforming Bangladesh into a high-income country by 2041.
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Notes
- 1.
The estimates of total factor productivity (TFP) growth in the Bangladesh economy show that TFP growth was 0.25% per year during the 1972–1982 period which increased to 0.36% during 1997–2008 and further to 0.89% during 2009–2019. See, Mujeri and Mujeri 2020.
- 2.
In 2017, the unemployment rate is highest in higher secondary group (14.9%), followed by tertiary level (11.2%), other education group (4.6%) and secondary level (4.6%). For the less educated (primary at 2.7%, and no education at 1.5%) group, the unemployment rate is less than the national average of 4.2%. See, BBS, Labour Force Survey 2016–17.
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Mujeri, M.K., Mujeri, N. (2021). Inclusive Structural Transformation: Policy Agenda. In: Structural Transformation of Bangladesh Economy. South Asia Economic and Policy Studies. Springer, Singapore. https://doi.org/10.1007/978-981-16-0764-6_8
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