Thinking Aloud: Volume V, Issue 2: July 1, 2018

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This July 2018 issue of Thinking Aloud focuses on “Industrialization”. The first article on “The road to rapid industrialization in Bangladesh” highlights four major issues which need to be in order for a rapid industrialization in Bangladesh. First, the need for second-generation strategic and dynamic industrial policies aiming at rapid expansion and diversification of the manufacturing through large-scale domestic and foreign investments. Second, the need to address a number of supply-side constraints in the form of weak infrastructure and the high cost of doing business within a short time span. Third, the need to attach decisive emphasis on improving the existing low level of human capital by enhancing investment on education, skill development, and health. Fourth, the need for strong commitments from the political elites for necessary economic and institutional reforms for a rapid industrialization. The second-page article titled “What factors affect Industrialization?” conducts a cross-country fixed effect panel econometric analysis using panel data for 107 developing countries for the years 1970-2016. The results from the analysis suggest that the size of the population, share of households with access to electricity, lower rate of applied tariff rate, domestic private sector credit as share in GDP, investment as share in GDP, labor force participation rate of younger people (age 15-24), and share of public expenditure on education in GDP have positive and statistically significant association with higher manufacturing share in GDP. The third page contains two articles focusing on the industrial sector and manufacturing growth potential of Bangladesh. The article titled “Addressing skills mismatch for industrial growth: Bangladesh perspective” emphasizes the context of skills mismatch in the labor market of the country with respect to the future requirement of the industries. The article titled “Prioritizing manufacturing sector policies in Bangladesh” highlights the importance of sustainable structural transformation and manufacturing sector growth in the coming years and identifies a few key areas in need of immediate policy attention in this regard. The final page draws attention to the events that took place in the month of June.

Link: Thinking Aloud: Volume V, Issue 2: July 1, 2018