Economic Impact of the Formal Textile Market on Regional Development in Chattogram, Bangladesh: A Quantitative Analysis.

Master Bc. MD Mahmudul Hasham, MSc.

Master's thesis

Abstract:

Objectives of thesis: The main objective of the thesis is to evaluate the economic impact of the formal textile market on regional development in Chattogram, Bangladesh, over the period 2000–2023. To achieve this, two specific sub-objectives are set . First, the relationship between the performance of the formal textile market and economic growth in Chattogram is determined over the period 2000–2023. Second, the effect of industrial growth in the textile sector on export performance is evaluated over the same period. Methodology: Secondary time-series data covering the period 2000–2023 will be collected from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Export Promotion Bureau (EPB), the Bangladesh Bureau of Statistics (BBS), the Bangladesh Bank, and the World Bank World Development Indicators (WDI) database. For the first sub-objective — determining the relationship between formal textile market performance and economic growth — Ordinary Least Squares (OLS) multiple regression will be applied, where GDP growth rate will be regressed on RMG export value, employment, FDI net inflow, and RMG output. Prior to estimation, multicollinearity will be assessed through Variance Inflation Factor (VIF) analysis, and the stationarity of all time series will be tested using the Augmented Dickey-Fuller (ADF) and KPSS tests. Post-estimation diagnostics will include the Durbin-Watson and Breusch-Godfrey tests for autocorrelation, the Breusch-Pagan test for heteroscedasticity, and the Shapiro-Wilk test for normality of residuals. Model performance will be evaluated through the coefficient (β), standard error, t-statistic, p-value, 95% confidence interval, R², Adjusted R², and F-statistic. For the second sub-objective — evaluating the effect of industrial growth on export performance — a second OLS multiple regression model will be applied, where RMG export value will be regressed on the number of operational factories, sectoral investment, and employment. The same pre-estimation and post-estimation diagnostic procedures will be applied as in the first sub-objective.

Keywords

Formal textile sector, Regional development, Export performance, Erconomic growth, OLS regression, Time series analysis, Industrial growth, RMG industry

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 27. 3. 2026

Obhajoba závěrečné práce

• Obhajoba proběhla 29. 5. 2026
• Vedúci: doc. Ing. Vladimír Krepl, CSc.
• Oponent: Michaela Perunová, Ing.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme:
Economics and Management