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The analysis highlights several distinct characteristics of Bangladesh’s structural transformation including changes in value added, trade, employment, productivity, formal-informal jobs, and opportunities for low-skilled workers. The book suggests that the manufacturing sector could not create the required number of jobs and generate rapid absolute and relative productivity gains in the Bangladesh economy. Although the services sector has largely led output and employment growth, services subsectors with strong labour absorptive capacity have low average productivity. Hence, growth-enhancing structural transformation led by these subsectors is likely to be less dynamic than required for rapid employment-creating growth in the economy.
The book’s analysis on COVID-19 and cyclone Amphan shows that an integrated disaster and development paradigm is needed for Bangladesh. An inclusive and health and well-being focused structural transformation presents the pathway to advance the people-centred approach to development in Bangladesh through both vulnerability reduction and investments in sustainable development that would offset both known and unknown disaster threats. The key for Bangladesh is to skillfully manage the ‘developer’s dilemma’ of achieving both structural transformation in terms of large productivity gains and inclusive growth for reducing poverty and rising inequalities. This book is relevant to students, academicians and development practitioners and others interested in contemporary development.
1.1 Introduction
1.2 A Multidimensional View1.3 Bangladesh’s Structural Transformation
1.4 Primacy of Equality Horizon
1.5 Organisation of Chapters
Chapter 2: Structural Transformation: Theory and Global Evidence
2.1 Introduction
2.2 Measures of Structural Transformation
2.3 Gains from Structural Transformation
2.4 Structural Transformation: Global Trends
2.4.1 Historical Trends of Developed Countries
2.4.2 Recent Trends in Developed and Developing Countries
2.4.3 Structural Transformation and Premature Deindustrialisation
2.5 Structural Transformation and Development Theory
2.5.1 The Neoclassical Growth Models
2.5.2 The Structuralist Framework2.5.3 The New Structural Economics
2.5.4 Revival of New Latin American Structuralism
2.5.5 The Value-Chain Approach
2.5.6 Resource-based Industrialisation
2.6 Empirical Evidence on Structural Transformation
2.6.1 Manufacturing as Engine of Economic Growth
2.6.2 Effect of Structural Transformation on Labour Productivity
2.6.3 Structural Change within Manufacturing Activities2.6.4 Industrial Upgrading within Value Chains
2.7 Premature Deindustrialisation: Role of Services Sector
2.8 Structural Transformation and Development
2.8.1 Structural Transformation and Labour Market Changes
2.9 Structural Transformation, Employment and Poverty
2.9.1 Structural Transformation and Human Development
2.10 Concluding Remarks
Chapter 3: Structural Transformation in South Asia: An Overview
3.1 Introduction
3.2 Structural Transformation in South Asia3.2.1 South Asian Growth Surprises
3.2.2 GDP Growth and Its Composition
3.2.3 Changes in Macro Aggregates
3.3 Productivity Growth and ST in South Asia: A Panel Data Analysis
3.3.1 A Dynamic Panel Model
3.3.2 Methodology and Data
3.3.3 Empirical Results and Implications
3.4 Factors Influencing ST in South Asia3.4.1 Reforms for Transition and Growth
3.5 Poverty and Human Development
3.5.1 Multidimensional Poverty in South Asia3.6 South Asia: A Region of Growing Inequality
3.6.1 Income and Wealth Inequalities
3.6.2 Landlessness and Rising Inequality
3.6.3 Gender Inequality
3.6.4 Rising Informality in Employment
3.7 Inequality in Access to Basic Services
3.7.1 Access to Water and Sanitation
3.7.2 Access to Health Services
3.7.3 Access to Education
3.7.4 Inequality in Fiscal Regime
3.8 Sophistication of Exports of South Asian Countries
3.9 Concluding Remarks
Chapter 4: Structural Transformation: Macro Characteristics in Bangladesh
4.1 Introduction
4.2 Economic Structure before Independence
4.3 Growth and Structural Transformation, 1971-2020
4.3.1 Growth of GDP and GDP Per Capita
4.3.2 GDP by Use
4.3.3 Changes of GDP by Industrial Origin
4.3.4 Savings and Capital Formation
4.3.5 Sectoral Composition of GDP
4.4 Economic Growth and Structural Transformation
4.4.1 Structural Transformation in the Bangladesh Economy
4.4.2 Interdependence, Linkages and Leading
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