Drivers of and Obstacles to Urban Competitiveness from the Perspective of the Garment Sector
Chittagong City, and the Chittagong EPZ.2 The sampling frame was drawn to ensure adequate coverage of small, medium, and large-size firms as well as producers of both knitwear and woven (or ready-made) garments. Garment managers and accountants were interviewed at the sampled firms. Two hundred workers, in a subsample of randomly selected garment firms, were also surveyed. The stratification led to a required total sample of 1,000 firms. (See appendix B for details on the survey methodology; figure B.1 and table B.1 in appendix B describe the characteristics of the sample.) The survey of garment firms reveals significant variation in competitiveness across the surveyed locations (figure 5.1). Access to markets/labor and power supply—the two factors’ garment firms value the most—are Dhaka City’s main comparative advantages. Dhaka City is falling behind in accessibility and livability, because of heavy traffic congestion and severe constraints in land and housing markets. Peri-urban areas of metropolitan Dhaka benefit from access to markets, given the proximity to Dhaka, but they suffer from Dhaka City’s congestion and have less access to infrastructure. Chittagong City has advantages in accessibility, land, and housing relative to Dhaka but is at a disadvantage in access to markets. The Dhaka and Chittagong EPZs are partially shielded from the inefficiencies of urban areas.
2.5
0.27***
0.25** 0.23*** 0.25*** 0.20*** 0.48***
0.71*** 1.06*** 0.16*** 0.15***
Adequate 3.0
0.80**
3.5
–0.19*** –0.09* 0.25**
Excellent 4.0
–0.13*** 0.29***
Figure 5.1 Garment Firms’ Rating of Locations’ Performance Factors
–0.13***
68
Poor 2.0 1.5 Very poor 1.0 0.5 0
Access to markets Infrastructure and labor
Accessibility
Dhaka City Urban peri–urban areas of Dhaka Rural peri–urban areas of Dhaka
Land and housing
Governance and regulation
Dhaka EPZ Chittagong City Chittagong EPZ
Source: Garment Firm Survey 2011. Note: EPZ = export processing zone. Dhaka City refers to the Dhaka City Corporation. Chittagong City refers to the Chittagong City Corporation. Dhaka refers to the Dhaka metropolitan area. Statistically significant differences relative to Dhaka City are reported. Significance level: *** = 1 percent; ** = 5 percent; * = 10 percent.
Bangladesh • http://dx.doi.org/10.1596/978-0-8213-9859-3