Labor Demand and Export-Oriented Industrialization of Bangladesh

This thesis based on the findings of a study on labor demand and export-oriented industrialization in Bangladesh at the time of 1992-93 to 2016-17. For this persistence, secondary data from different sources (BBS, WDI, EPB, BER, WB, BB, etc) for the time duration 1992-2017 has been composed and analyzed through econometric tools. The test approves that the disturbance terms are normally distributed. To detect that the data suffer from multicollinearity, heteroscedasticity, and autocorrelation problem, the diagnostic test has been adopted. From the diagnostic test, it is detected that while the data free from heteroscedasticity and autocorrelation problems, however, the data suffer from severe multicollinearity problem. The multicollinearity problem is removed using remedial measures. The Unit root test has been detected to test the stationarity of the composed data. Among different unit root test, ADF-test is adopted. The test displays that the data are stationary at the first difference level for export-oriented industrialization and the second difference level for labor demand. The Johansen co-integration test is adapted to test whether the data are cointegrated at any level. The test results approve that six variables are cointegrated on labor demand and one variable cointegrated on export-oriented industrialization. The Granger causality test under VAR (Vector Autoregressive Regression) framework displays the variable has a unidirectional causal relationship with the dependent variable where all independent variables lead, and the dependent variable follows. However, these relationships have found a statistically significant positive impact of labor demand and export-oriented industrialization in Bangladesh. Thus, there is a dynamic relationship between domestic labor demand, export, and economic progress in Bangladesh.

As a sufficient labor country, the scene of the entire economy of Bangladesh depends on the structures of the labor market. In economics, the labor demand of an employer is the number of labor-hours that the employer is willing to hire founded on the different exogenic variable quantity it is faced-lined with, such like the wage rate, the unit charge of capital, the market determined retailing price of its output, etc (Van, 2009;Adnan, 2018). In fact, the demand for employment is not appropriate enough to generate the job opportunity for the current unemployed as well as underemployed workers. Hence, the economy faces an excess supply of labor. However, this sector is playing a noteworthy part in advance Bangladesh to the current position. In the world of globalization, economic development is highly correlated with the use of human capital (Khan and Ullah, 2017;Islam and Hossain, 2014). It stimulates economic growth through increasing the level of workers' efficiency and productivity (Jajri and Ismail, 2010;Mitchell, 2008) The key objectives of the study are to find out Labor Demand and Export-Oriented Industrialization of Bangladesh as follows: To present the situation of labor demand and export-oriented industrialization in Bangladesh; to investigate econometrically the impact on labor demand of many exogenous variables in our economy; to assess the impact of exportoriented industrialization on the economic growth of Bangladesh; to examine the average of existing of labor based on them wages by the study (Michael, 2017). Labor demand and export-oriented industryalization as one of the major components of economics activities play a central role in providing nutrition, employment, and foreign exchange earnings in the economy of Bangladesh (Ahmad and Khan, 2007;Krainara, 2007).
Bangladesh is well recognized across the globe for its stunning success in the ground of readymade garment industries (BGMEA, 2013). It comprises about 80% of the entire export of Bangladesh. It has stayed able to make employment opportunities for millions, ease poverty, accelerate industrialization, appeal foreign direct investment, activate business, and generate an encouraging image of Bangladesh abroad (Rasiah and Nazeer, 2016). A good number of examines have been completed on numerous problems going from gender discrimination, the influence of globalization in the garment trade of Bangladesh (Tran and Norlund, 2015). This paper may justify the importance of labor demand and export-oriented industrialization in Bangladesh. This also helps to analyze which one is more effective on the labor demand and what steps should take to make those significant for the development of the export industrialization (Getahum, 2018;WDI, 2020).

MATERIALS AND METHODS:
The persistence of this thesis paper is to measure labor demand and export-oriented industrialization in Bangladesh. The final results of exogenous variables, secondary time series data sources and covers were considered for the period of years 1992-2017. Overall, all 26 observations which should be appropriate for capturing the short-run and long-run relationship between the variables.
In this analysis, exogenous variables like-wage rate, GDP, income per capita (IPC), foreign direct investment rate (FDIR), age rate, unemployment rate was considered as variables and employment (EMP) was taken as the dependent variable for labor demand and also analysis that exogenous variables like exchange rates (EXR), employment of industry rate (EMPIR), and trade balance (TB) were measured as variables, and total export rate (EXP) was taken as the dependent variable for export-oriented industrialization. In this research work, the association between labor demand and export-oriented industrialization is promoted by Ordinary Least Square (OLS) method (Anda and Mohamed, 2013).
For short path and long path dynamics ADF Test, Johansen Co-integration Test, VECM are used here and Granger Causality Test is used to see the causation between the variables. Further, Normality, Multicollinearity, Heteroscedasticity, and Autocorrelation are detected by Jerque Bera test, OLS regression, Breusch-Godfrey (BG) test and Breusch-Pagan-Godfrey (BPG) test respectively. RESULTS:

Ordinary Least Square Result (OLS)
The Ordinary Least Square (OLS) of the specified data is indicated in the following form:  Here, 2 explains that there is a durable and linear relationship with the goodness of fit between the multivariable regression of dependent and exogenous variables. Then, all t values like that are significant at 5 percent level. The F value test is also statistically extremely significant at 1 percent, which suggests that the null proposition is rejected. The result also designates that the wage rate, income per capita, the gross domestic product, the foreign direct investment inflow, age rate, and unemployment rate directly affect employment. The income per capita and age rate have not a positive effect on labor demand in Bangladesh.
From the above outcome, the residuals from the linear regression (1) appear to be not asymmetrically distributed. Application of the Jerque-Bera test indications that the JB statistic is about 0.405899 and the probability of finding such a statistic under the normality assumption is about 81 percent. This probability is moderately high. These probabilities were attained from a sample of 26 observations, which seems reasonably high. Therefore, we do not reject the null hypothesis at 1%, 5%, and 10% level of insignificance that the residuals term is normally distributed (Basak et al., 2006).

Ordinary Least Square Result (OLS)
The Ordinary Least Square (OLS) of the specified data is indicated in the following form:  From the regression model gotten above ( Table 4) that, holding all other factors constant the total employment is 6.2849, which is positive. The result shows that the exchange rates are .05260, employment of industry rates is -.0489941, and trade balance is -.072784 that decreases in LNEXP. We know that 2 is a non-decreasing purpose of the number of descriptive variables. The value of 2 (coefficient of determination) is 0.9736 in the model represents that 97% of the deviation in the dependent variable (LNEXP) is due to exogenous variables included in which authenticates the model.  Here, the value of 2 explains that there is a positive and linear relationship with the goodness of fit between the multivariable regression of dependent and exogenous variables. Then, all t values like that are significant at 5 percent level. The F test value is also statistically particularly substantial at 1 percent, which suggests that the null proposition is rejected.
The result also designates that exchange rates, employment of industry rates, and trade balance directly affect the employment (Saha et al., 2020).
The employment of industry rates and trade balance has not a positive effect on export-oriented industrialization in Bangladesh (Stephenson and Hoffbauer, 2010; WTS, 2016).

Fig 2:
Graph of Jarque-Bera Test of Normality (The test is designed by E-views student 10 + liteversion) From the above outcome, the residuals from the linear regression (1) appear to be not asymmetrically distributed. Application of the Jerque-Bera test indications that the JB statistic is about 0.974366 and the probability of finding such a statistic under the normality assumption is about 61 percent. This probability is moderately high. These probabilities were attained from a sample of 26 observations, which seems reasonably severe. Therefore, we do not discard the null proposition at 1 %, 5 %, and 10 % level of insignificance that the residuals term is usually distributed.

DISCUSSION:
The findings disclose that the Ordinary Least Square (OLS) methods confirms that the positive correlation regression analysis and is a non-decreasing purpose of the number of descriptive variables. The value of (coefficient of determination) in the model represents that 100% of the deviation in the dependent variable is due to exogenous variables included in which authenticates in these models. Therefore, the value of explains that here is a durable and linear relationship with the goodness of fit between the multivariable regression of dependent and exogenous variables.
To test the normality of the disturbance terms Jerque-Bera (JB) normality test is accepted. The Jerque-Bera (JB) normality test approves that the disturbance terms are normally distributed. The Unit Root Test has been detected to test the stationarity of the collected data. The Johansen co-integration test adopts to test whether the data are cointegrated at any level in these models. The VECM method observes to the short-run and long-run relationship of the independent variables together with dependent variable.
And the Granger Causality test under VAR (Vector Autoregressive Regression) framework demonstrations the variable has a unidirectional causal relationship with dependent variable where all independent variables follows. On the base of findings of the research study, it may be resolved that earnings from labor demand and export-oriented industrialization show positive growth per annum during the whole study period (Yamagata, 2006). It is also concluded that instability in exports of the readymade garments, exchange rates, and economic growth rates enlarged in the recent past (Zohir, 2001;Nahid et al., 2019). Well labor demand industrialized and systematic export promotion program is needed for exports which will have a significant impact on both industrial and economic development (Afaf et al.,  2015).

CONCLUSION:
Thus, the growing rate in labor demand and exportoriented industrialization of Bangladesh for future years will be satisfactory. These experimental findings can be significant source of evidence for the  showing that engaged with labor was one-third of all labor and its export percentage grew up which have solely passed the low-cost of Bangladesh until now. Moreover, the government should maintain an export friendly environment to sustain economic growing in the future. On the foundation of findings of the research study, it may be resolved that earnings from labor demand and export-oriented industrialization show positive growth per annum during the whole study period. These experimental findings can be significant source of evidence for the manufacturers, traders, labourers, exporters, and researchers to build basis for further research in this sector.

ACKNOWLEDGEMENTS:
All praises are due to the omnipotent, omnipresent and merciful Allah, who permitted the author to explore her higher studies to complete the research work along the way.