Local clusters in global value chains: an investigation of the global garment industry, with a focus on Bangladesh.

The garment industry is a major player in the global economy, with sophisticated production networks that span multiple countries. The objective of this study is to explore the dynamics of garment industry clusters, with a specific focus on Bangladesh, and to discuss the industry context within the global value chains (GVCs). The paper also analyzed the specificity of these clusters in Bangladesh, alongside their functions and contributions to the global apparel industry. In the initial stage through a literature review of selected literature, the paper examines the systematic correlation between local clusters and global value chains. It also provides a historical backdrop on the industrial clusters and global value chains concept, evaluates its evolution, and critically analyzes the integration of local clusters into the global value chain. Then, the paper seeks to quantify the global apparel market, this entails presenting the global garments industry landscape and mapping out the relationships between major importers and their export counterparts, while also identifying the key entities involved in the Global Value Chains (GVCs). Moreover, the data collection policy involves a dual methodology, integrating both quantitative secondary data and qualitative methods to ensure a holistic understanding of Bangladesh’s garments industry clusters and global value chains (GVCs). Qualitative data was obtained through interviews, which facilitated an investigation of the garment industry cluster in Bangladesh with respect to the experiences, perceptions, activities, and performance of those involved. Finally, the paper compiles practical information to convey inspiration and encouragement for prospective advancements in the garment industry clusters within Bangladesh.