Structural Dependence of the Textile and Clothing Industry in Bangladesh: A Comparative Input–Output Analysis with Vietnam and Pakistan
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This study examines the structural dependence of Bangladesh’s textile and clothing industry (TCI) within the national production system and benchmarks it against Vietnam and Pakistan. Using an input–output framework, the analysis quantifies economy-wide losses in total output and gross value added (GVA) when the sector’s inter-industry linkages are hypothetically removed and simulates partial disruptions to assess short-run vulnerability. Under complete extraction, Bangladesh experiences the largest systemic losses—output declines by 18% and GVA by 13%—indicating deep intersectoral reliance on the TCI. Vietnam and Pakistan show smaller but meaningful impacts due to greater industrial diversification and upstream reliance on agriculture-based inputs, respectively. Backward dependence is strongest in Bangladesh, while Vietnam’s limited forward dependence reflects its export-oriented structure; Pakistan’s linkages remain concentrated upstream in raw-material supply. A 20% contraction scenario further highlights Bangladesh’s vulnerability compared to the other two countries, underscoring the TCI’s central role in propagating output and value-added across the economy. The comparative results indicate differentiated policy priorities: strengthening domestic intermediate textile production and supply-chain efficiency in Bangladesh; increasing domestic supplier participation in Vietnam’s export networks; and modernizing upstream input industries in Pakistan. JEL Classification: C67, D57, F14, O11, R15