AIUB Journal of Business and Economics

Volume: 11, Issue: 1

Publication Date: 30th November, 2014

ISSN 1683-8742 (Print)                                                 ISSN (online): 2706-7076


The Development Discourse in the Context of Bangladesh: A Critical and Analytical View

Md. Dulal Miah*


Economic development is believed to be contributed by several different factors including human capital, physical capital, savings, investment, infrastructure development etc. As such, different schools of thought have evolved to explain economic growth and backwardness in countries. This paper critically analyses leading development theories in the context of Bangladesh and argues that the literature concentrates heavily on the economic subsystem (factors of production) while neglecting interrelated and complementary counterpart, institutional subsystem (ownership over the means of production). However, in order to find a suitable solution for underdeveloped economies, institutional aspects are to be properly emphasized.

Key Words:     Economic development, development theory, institutions, Bangladesh. pp. 01-27, click here for full paper.

Impact of Implementing TQM in RMG Manufacturing Units in Bangladesh

M.F. Hossain*, Amir George*, Md. Khorshed Alam Talukder* and Asfaq A. Mohib*


Total quality management is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs once for all. Readymade garments (RMG) industry in Bangladesh is well qualified with exceptional growth since 1995. It contributes 77% to the country’s net exports, which is more than 25% of GDP growth. Bangladesh has got 5150 export oriented factories, but, none of these units is following total quality management (TQM). All factories must understand that the customers will be satisfied, if they receive products and services that accomplish their needs, are delivered at the right time and are priced for value. A couple of hypothesizes of this study are, there is a positive correlation between suppliers and manufacturers of RMG of Dhaka, if least amount of efficiency in input will result in the most output of RMG of Dhaka. The significant objectives are, to analyze TQM in RMG manufacturing units of Dhaka, to find out TQM in satisfaction of internal and external customers, to explore the possibilities of effectiveness. The research tools are used such as questionnaire, face to face interview, discussion on case studies, published reports. The samples are 37 respondents from 33 different RMG organizations. They have been selected on random sampling method. This study divulges, quality is the strongest competitive weapon for RMG industry. All manufacturing units should set the factories to meet the compliance standard, to meeting the “zero defects” products, to train the middle level managers and supervisors as leaders, to follow “House of Quality” matrix, to strengthen the communication between purchase and quality departments with suppliers, RMG units should provide employee empowerment, satisfy the customer needs, establish research and development, continuous improvement process and finally ensure TQM model. Government and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) needs immediate action to provide training and seminar to RMG employees on proposed TQM.

Keywords: TQM, RMG, Compliance, zero defects, customer satisfaction, TQM model, BGMEA. . pp. 29-53 click here for full paper.

Protection of Intellectual Property Rights in View of International Treaties: Bangladesh Perspective

Mohammad Nazmuzzaman Bhuian¥, Nahid Rabbi


With the advancement of science, technology, global business and economy, intellectual property rights (IPRs) are signifying their prominence in the whole world including developing countries. A comparative study of IPRs in international treaties and in national legislation of a developing country is nothing but a re-examination of the myth that developing countries are reluctant in protecting intellectual property (IP) in their domestic domain. This article therefore traces the basis and safeguards of IPRs at international level and explores the reflection of the same in national legislation of Bangladesh, a developing country. It positively concludes that triumphing over past paradoxes and deficiencies and also prevalent obstacles, Bangladesh is approaching towards an effective legal regime for better and efficient IPRs’ protection like other progressive developing countries.

Keywords: Intellectual Property Right, International treaties, National legislation, Developing country. pp. 53-90 , click here for full paper.

Factors Affecting Selection of External Auditors in Banking Industry in Bangladesh: An Application of AHP

Mahmud Rahman , Mahbubul Haque and Afia Muqtadir


The selection of external auditors has a paramount significance in ensuring transparency and accountability of the publicly traded business entities, particularly in the banking sector. This prompts us to investigate the factors that influence the clients in appointing external auditors in this industry. Analytic Hierarchy Process (AHP) is applied by choosing five criteria that affect the selection of external auditors. The results indicate that among the chosen five criteria, ‘affiliation with the Big 4’ is given the most importance (around 63%) in choosing the auditors. Experience (15%) and technical expertise of the auditors (14%) are ranked second and third followed by their independence (6%) and the audit fees (3%) charged by them. Inconsistency in the judgment being 9% falls below the threshold value of 10% demonstrating the acceptability of the results of the study. Addressing the limitations will open the door for future research. The implications of the research findings and avenues open for further studies are also put forward.

Key Words:  External Auditor, Analytic Hierarchy Process, Agency Theory, Banking Industry. pp. 00-00, click here for full paper.

Consumers’ Awareness of Chemically Treated Fruits: A Study on Consumers of Dhaka City

Mahmud H. Zaman* , Stanley S. Rodrick* , Sabrina Zaman† and M. F. Hossain*


Use of chemical in food and food adulteration has always been a long standing issue of consumer in both developed and developing countries. Many different government bodies in segregated geographical regions instated laws and regulations in order to protect consumers from harmful effects of consuming toxic foods. The citizens of Bangladesh however are still in danger of consuming foods which are chemically treated with hazardous materials (such as calcium carbide, sodium cyclamate, cyanide and formalin, etc.). Many different national newspapers are constantly reporting the use of malicious substances fruits, vegetables, fish, foods and foods stuffs.  This paper illustrates consumers’ awareness of adulterated food items through a questionnaire of 252 respondents at Dhaka. The collected data was coded using SPSS Version 17 and analysed for frequency distribution, cross tabulation and correlation analysis. Regression analysis was further used to analyze associate relationship between dependent variable and the independent variable. The results showed strong relationship between the dependable variable (awareness level) and the independent variables; i.e. sources of information (r=0.897, p<.01), awareness of chemical booths (r=0.827, p<.01) and awareness of Laws (r=0.698, p<.01).

Keywords: chemical treatment, consumer awareness. pp. 91-100 , click here for full paper.

Women in Informal Labor Market: Bargaining Power Still Hangs in Balance

Farhana Zaman§, Shaira Matinª


Informal labor sector becomes a pivotal part of Bangladesh economy in term of its contribution to total employment. Due to the overpopulation the formal sector has failed to accommodate a bulging labor force of our country. Therefore the informal sector appears to be the major source of employment especially for women in urban areas as the formal sector is dominated by male. But unfortunately the increased rate of participation of women in this sector is characterized by low and irregular income thus ineffective to ensure women’s greater bargaining power at home. Drawing on two surveys conducted in 1998 and 2013, this paper aims to assess the difference between the living standard of women workers in the past and at present. The study found no significant positive change in their living conditions. Based on both quantitative and qualitative study, this paper also explores the decision making power of women over the fertility issues. The study found that these women tend to have more number of children due to the strong influence of their male counterparts. The study further suggests that the government should immediately address the issue by forming new laws and policies for the urban informal women workers to incorporate/ integrate them with the mainstream labor market and thereby pave the way towards women empowerment.

Key words: Informal labor sector, Bargaining power, Women empowerment. pp. 101-119, click here for full paper.

Labor Unrest in Ashulia Industrial Hub

M.F. Hossain * , Amir George*


Bangladesh readymade garments (RMG) industry has qualified with exceptional growth since 1995, contributes 77% to the country’s net exports, which is more than 25% of GDP. Bangladesh has got 5,150 export-oriented RMG units and around 95% of the industry is located in 9 different districts, Ashulia is one of among them. Ashulia industrial belt has got more than 300 RMG factories and all these factories were closed from 11th June to 19nd June 2012 and loss is more than US $100 million. The annual RMG export is US $3.6 billion from Ashulia industrial belt, which is 16% of total exports from Bangladesh. Therefore, an attempt has been made to find out the causes, effects, centralized programs, remedial solutions and precautionary measures to avoid the labor unrest. The research tools used are questionnaire for laborers and interview schedule for factory management. The samples were taken randomly from twenty six laborers, ten managers, three coordinators and six Directors. This study divulges that employee unrest not only the less wages issue, but other primary causes such as union leaders and political leaders’ influence, non-garment workers involvement and the secondary reasons are less wages, imbalanced house rent, inflation and illiteracy. Concluding remarks, Government should suspend the function of trade unions outside the factories. Government and BGMEA have to fix the labor wages annually depend upon inflation fluctuation and to ensure that every factory gets nonpolitical labor representatives. Government, BGMEA and factory management should work together and urgently need to provide affordable accommodation for workers. As a result, influencing by outsiders can be condensed and avoid unrest.

Keywords: Readymade Garments (RMG), The Bangladesh Garment Manufacturers and Exporters Association (BGMEA), The Government of the People’s Republic of Bangladesh. pp. 121-138, click here for full paper.