Analyzing Employment Structure and

Dynamics in Economic Zones of Dhaka:

Implications for Sustainable Development
(Research Proposal)
 Research Proposal
on

Analyzing Employment Structure and Dynamics in Economic Zones of Dhaka: Implications

for Sustainable Development

Course Code: G101

Course Name: Economics of Geography and Environment

Submitted to

Dr. M. Maksudur Rahman

Professor
Department of Geography & Environment

University of Dhaka

Submitted by

Group 10

Md Rahimul Islam Rihad (60)

Mustahidur Rahman Navo (70)

Ayman Hasan Zaman (80)

Utsha Howlader (90)

Labiba Rahman (100)

Mubassir Ibn Nazib (110)

Section-B, BBA 31st

Date of submission: March 25, 2024

 Letter of Proposal

March 25, 2024

Dr. M. Maksudur Rahman

Professor

Department of Geography and Environment

University of Dhaka

Dhaka, Bangladesh

Dear Sir,

We, the students of BBA 31st (Section B), request your approval for our research proposal titled
"Analyzing Employment Structure and Dynamics in Economic Zones of Dhaka: Implications for
Sustainable Development." This study aims to investigate the employment landscape within Dhaka's
economic zones and its impact on sustainable development. Your guidance and support in this
endeavor would be highly appreciated.

Thank you for your consideration.

Sincerely,

Group 10

Md Rahimul Islam Rihad (60)

Mustahidur Rahman Navo (70)

Ayman Hasan Zaman (80)

Utsha Howlader (90)

Labiba Rahman (100)

Mubassir Ibn Nazib (110)

 Table of Contents

1.0 Introduction ...................................................................................................................................................................................1

1.1 Research Topic .........................................................................................................................................................................1
1.2 Research Problem Statement ............................................................................................................................................1
1.3 Significance of the Research ...............................................................................................................................................1
1.4 Aims and Objectives of the Research..............................................................................................................................2
2.0 Literature Review ........................................................................................................................................................................2
3.0 Research Questions .....................................................................................................................................................................3
4.0 Methodology ..................................................................................................................................................................................4
4.1 Data Collection .........................................................................................................................................................................4
4.2 Data Analysis.............................................................................................................................................................................4
4.3 Data Integration.......................................................................................................................................................................5
4.4 Reporting Findings .................................................................................................................................................................5
4.5 Limitations and Future Directions ..................................................................................................................................5
5.0 Expected Results and Contribution of the Report .........................................................................................................5
6.0 Conclusion .......................................................................................................................................................................................8
7.0 References .......................................................................................................................................................................................9
1.0 Introduction
1.1 Research Topic
Analyzing Employment Structure and Dynamics in Economic Zones of Dhaka: Implications for Sustainable
Development

1.2 Research Problem Statement

In recent years, the number of economic zones (EZ) in Dhaka has proliferated, but there is a lack of
understanding between the employment structure and the dynamics within these zones. EZs are designed
and operated to attract foreign direct investment (FDI) and promote industrialization while creating
employment opportunities for the local demographic. However, there is limited research on the
composition, trends and other influencing factors of employment in Dhaka’s EZs. The employment
structure also varies within specific kinds of EZs; for instance, the manufacturing-based zones like the
Dhaka Special Economic Zone (DSEZ) and information technology based zones like the Dhaka IT Special
Economic Zone show significant variance in their respective employment structure.
Secondly, the employment dynamics in EZ are crucial indicators for sustainable development.
Employment structure has effectives as outreaching as social inclusion, equity and environmental
sustainability. Understanding the employment patterns can unlock potential for evidence-based policies.
Informed decisions can boost the growth of these EZs. The research also takes the centralization tendency
of the country into account. Dhaka being the capital of Bangladesh attracts both investors and employees
from a variety of backgrounds. By understanding the intricacies involved in these EZs, a more refined
employment structure can be achieved.
Furthermore, there is a gap of knowledge in the growth of EZ and their respective employment. How a
specific kind of employment pattern contributes to the growth of specific kinds of EZ is understudied. No
clear trend has been spotted on the correlation of the two variables, hence this field fails to offer insights
into the policies.

1.3 Significance of the Research

The research will provide empirical insight into the employment structure and dynamics within the EZs
of Dhaka. The findings will inform policymakers and other agents of development such as Bangladesh
Economic Zones Authority (BEZA) to formulate evidence-based policies. The insights can help minimize
the drawbacks of such policies and optimize the socio-economic benefit they entail.
The distributional effects of EZ-centric employment can promote inclusive growth. In Bangladesh, spatial
disparity is predominant. By identifying the key determinants of employment pattern and their
implication for the general population, this research can contribute to ensure fair and equitable access to
employment, consequentially help social inclusion. Furthermore, foreign investors and many
multinational corporations (MNC) are looking to invest in Dhaka’s EZs. This research will offer valuable
insights on the local labor market, helping the investors to make informed decisions. By analyzing the
employment trends within these EZs, skill development initiatives can be designed better.

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1.4 Aims and Objectives of the Research
The aim of this research is to gain a deeper understanding of employment within Dhaka’s various
economic zones. The focus will be on the employment structure within Dhaka’s economic zones (both
government-established and private) and analysis will be carried out on the variation in their
compositions in terms of jobs, age, population, gender and other social, economic, geographic and
functional factors.

The economic zones in Bangladesh have had a role in creating employment within the country, and there
are plans to develop more economic zones and further stimulate employment. Economic zones are
projected to create employment, directly and indirectly, for 10 million people (Khan, 2023). Efforts have
been undertaken to make these economic zones attractive investment destinations (through “competitive
incentive packages and quality service”). These competitive incentive packages include tax benefits,
simplified regulatory processes and access to utilities.

To fulfill the aim mentioned above, we intend to complete the following objectives:

o Delineate the employment structure in each of Dhaka’s various economic zones

o Establish a pattern in the structure based on e.g. geographical location

o Compare and contrast the economic zones in terms of employment

o Determine whether employment structure has any effect on the effectiveness of economic zones

o Determine what kind of effect economic zones have on stimulating employment in the overall
economy

2.0 Literature Review

Several research and economic policy papers have strongly advised that the establishment of economic
zones may be necessary in order to boost employment possibilities and maintain the continuation of
economic advancement for any given country. Under the Private Sector Development Support Project
(PSDSP), the Bangladesh Economic Zone Authority (BEZA) was established and regulatory reforms were
undertaken (World Bank, 2021). This project, headed by the World Bank, helped create more than 41,000
jobs (from 2011 to 2021). In 2015, the Bangladeshi Government approved the plan to establish 24 new
Special Economic Zones (SEZs) with a vision to establish 100 SEZs by 2030, create employment for 10
million people and earn $ 40 billion from exports per year (Md. Shakil Ahmad, 2017). However, simulation
results show that direct intervention is needed in the economic zones in lagging areas for this increase in
employment to be distributed more evenly (Razzaque et al., 2018).

A paper by BEZA (2017) on 102 industries (mostly in Dhaka) aimed to provide recommendations to
industry authorities, BEZA and the government regarding employment in economic zones. It was found
that there would be a shortage of labour in the economic zones, and recommendations were made to
establish training centres to provide skills development training to unemployed people. Another paper

2
posits that economic zones are crucial for Bangladesh to become a developed country by 2041 (Rahman
and Yusuf, 2019); the dynamic aspects of economic zones contribute to the economic growth of the
country. Also, BEZA has extended support to the local communities around economic zones through
compensation and training.

Majumder et al. (2022) examined the relationship between FDI inflows and EPZ (Export Processing Zone)
employment in Bangladesh. The methods used for this study were the Generalized Method of Moments
(GMM) and the Auto Regressive Distributed Lag (ARDL) bound test. There was found to be a positive
association between FDI inflows and EPZ employment both in the short-run and long-run. The study
suggested, among other recommendations, the development of training facilities and infrastructure to
facilitate FDI. Rifat (2024) examined the differences between the EPZ Labour Act 2006 and the EPZ Labour
Act 2019. Notably, there was more emphasis placed on working environment security and worker
benefits. This change, according to the author, will likely have an overall positive effect on EPZs by way of
more efficiency and greater attractiveness as foreign investment destinations.

Frick and Rodriguez-Pose (2019) analyzed the link between the performance of economic zones and the
growth of surrounding areas. The data set included 346 economic zones in 22 emerging countries and
personalized model was used for analysis. The study concluded that, indeed, there is a link, but the
strength of this link diminishes greatly with distance and that economic zones in remote areas have lower
growth spillovers (such as employment opportunities) to surrounding areas. A paper by Zeng (2019)
examined the effectiveness of economic zones on a global scale and identified key factors that lead to the
success of economic zones. This paper also takes a look at the labour market outcomes (such as health of
the workers) due to the presence of economic zones; however, the outcomes were found to be mixed. A
different paper, which aimed to assess the potential of Pakistan special economic zones, also took a global
perspective to its analysis (Zia et al., 2018). It found that African economic zones, in contrast to Asian
economic zones, failed to appreciably generate employment due to ineffective frameworks and policy
failures (e.g. incoherent trade policy).

3.0 Research Questions

For this research, we will focus on the following questions:

1. What are the employment structures in Dhaka’s many economic zones and do variations in
employment exist between them?

Variations are likely to manifest in terms of the nature of the jobs themselves, the size, age
structure, gender, background etc. of the labor employed in various enterprises in these economic
zones.

2. What factors affect these variations?

A combination of social, economic, political and geographical factors is likely responsible. Each of
these categories, on their own and in conjunction with each other, will be comprehensively
examined to provide a clear picture. Another factor that is likely to affect these variations is the
type of industrial agglomeration occurring in specific economic zones. Different economic zones

3
 are likely to attract different types of firms, and therefore, the nature of the jobs is likely to vary
based on the type of firms.

3. Do these variations in employment have any broader implications on the functioning of the
economic zones and Dhaka’s economy as a whole?

Does employment structure have an effect on the productivity or overall success of the economic
zones, and if so, why? Broadly, how does employment in Dhaka’s economic zones affect the
economy as a whole?

4.0 Methodology
This research project delves into the employment structure of Dhaka, Bangladesh, utilizing a wealth of
secondary data sources to paint a comprehensive picture.

4.1 Data Collection

Our primary source of information will be the Bangladesh Bureau of Statistics (BBS). Their labor force
surveys, like the LFS and HIES, offer invaluable data on workforce participation, industry and occupation
distribution, and income levels. We will meticulously download relevant reports and datasets from the
BBS website.

Furthermore, the Ministry of Labor and Employment website might provide insights into specific
industries, the balance between formal and informal sectors, and employment trends within Dhaka. To
gain a broader perspective, we will explore data from international organizations like the World Bank and
the International Labour Organization (ILO).Their Bangladesh-focused reports might shed light on labor
market regulations, skill development initiatives, and the informal sector's role in Dhaka's economy.

Finally, research institutions and think tanks in Bangladesh, such as the Bangladesh Institute of
Development Studies (BIDS) or the Centre for Policy Dialogue (CPD), might have conducted studies
specifically on Dhaka's employment structure. We will explore their online databases and potentially
reach out directly to acquire any relevant data they might possess.

4.2 Data Analysis

Once we have amassed this comprehensive data set, the analysis phase will begin. By utilizing statistical
analysis tools and spreadsheet software like Microsoft Excel, we will delve into the data from BBS reports.
This will allow us to analyze workforce participation, employment distribution across sectors and
occupations, and income distribution within Dhaka. Additionally, we will explore trends over time to
identify sectors experiencing growth or decline. If the data permits, we might even compare Dhaka's
employment structure with national averages or other major Bangladeshi cities.

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Beyond the quantitative aspect, we will also conduct a qualitative analysis of reports, publications, and
data visualizations from international organizations and research institutions. This analysis aims to
identify key findings on skills gaps, emerging industries, and the challenges faced by Dhaka's workforce.

4.3 Data Integration

The next step involves combining data from various sources to gain a holistic understanding of Dhaka's
employment landscape. We will cross-reference data from BBS reports with reports from international
organizations to identify any discrepancies or corroborate findings. This process will be further enriched
by analyzing research reports and publications alongside the quantitative data, providing a deeper
understanding of the regional context.

4.4 Reporting Findings

The culmination of this research will be a clear and concise report presenting the findings gleaned from
secondary data sources. Tables, charts, and maps (if data allows) will be instrumental in visually
representing key trends in Dhaka's employment structure. We will then delve into the implications of
these findings for economic development in Dhaka, highlighting the need for targeted skill development
initiatives and potential policy recommendations.

4.5 Limitations and Future Directions

It is crucial to acknowledge the limitations inherent in relying solely on secondary data. The availability
of detailed and up-to-date data sets, potential biases in data collection methods used by different sources,
and the lack of data on specific sectors or the informal employment sector are all factors to consider.

However, these limitations also pave the way for future research directions. By acknowledging the gaps
in our understanding, we can propose future research endeavors that utilize primary data collection
methods like surveys or focus groups. These methods can provide a more nuanced understanding of
specific aspects of Dhaka's employment landscape.

By following this comprehensive methodology, this research project aims to leverage the power of
secondary data to illuminate the intricate tapestry of Dhaka's employment structure, offering valuable
insights for policymakers, businesses, and individuals alike.

5.0 Expected Results and Contribution of the Report

This research on Dhaka's employment structure using secondary data is expected to yield a rich and
multifaceted analysis. We will be able to identify the major industry sectors that are the engines of Dhaka's
economy. The report will present a detailed breakdown of employment distribution across various
occupations, highlighting high-growth sectors and potential skill gaps. This will provide valuable insights
into the talent pool available in Dhaka and the skills that are most in demand by employers. Additionally,

5
the research will shed light on the prevalence of formal versus informal employment in Dhaka, offering a
more comprehensive understanding of the city's workforce landscape.

Beyond a static picture, the research will also analyze trends in employment growth or decline for specific
sectors over time. This will reveal emerging industries that are shaping Dhaka's economic future and
identify sectors facing challenges. This information can be critical for informing economic development
strategies and ensuring Dhaka's economic engine continues to hum.

By analyzing data on workforce demographics and job postings, the report also aims to identify the skills
and qualifications that are most sought after by Dhaka's employers. This can inform targeted skill
development programs, ensuring that the workforce has the capabilities to meet the demands of the
evolving job market.

If data permits, the research will also delve into the spatial distribution of employment across Dhaka's
districts. Mapping this data can reveal spatial variations in employment patterns and potential industry
clusters. This information can be valuable for urban planning initiatives and for businesses seeking to
locate in areas with a skilled workforce readily available.

The ultimate contribution of this report lies in its potential to deepen our understanding of the complex
economic dynamics of Dhaka. The findings can inform policymakers in developing strategies to promote
economic diversification and job creation in promising sectors. This could involve targeted investments
in infrastructure or providing incentives for businesses to invest in Dhaka. Additionally, the research can
guide the design of skill development programs that address the specific skill gaps identified in the
workforce. Furthermore, the report can inform policies that support both the formal and informal sectors,
ensuring inclusive economic growth in Dhaka.

The report can also be a valuable resource for a wider audience. Businesses seeking to expand operations
in Dhaka can gain insights into the skill sets available and emerging job markets. This can help them tailor
their recruitment strategies and investment decisions. Individuals considering job opportunities in Dhaka
can benefit from information on in-demand skills and dominant industries, allowing them to make
informed career choices. Finally, the methodology outlined in this report can serve as a model for future
research on employment structures in other regions using secondary data sources, promoting a broader
understanding of global workforce trends.

6.0 Plan of Action

Task Description Star Date End Date Duration

Task 1 Identifying Research 08.03.2024 09.03.2024 2 Days

Problem

Task 2 Developing Research 10.03.2024 10.03.2024 1 Day

Method

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Task 3 Determining the Aims 11.03.2024 11.03.2024 1 Day
and Objectives

Task 4 Planning Regarding the 12.03.2024 12.03.2024 1 Day

Project

Task 5 Reviewing the Available 13.03.2024 15.03.2024 3 Days

Literature

Task 6 Developing Research 16.03.2024 16.03.2024 1 Day

Plan

Task 7 Collecting Secondary 17.03.2024 18.03.2024 2 Days

Data

Task 8 Analyzing the Collected 19.03.2024 20.03.2024 2 Days

Data

Task 9 Developing Action Plan 21.03.2024 21.03.2024 1 Day

Task 10 Preparing the Proposal 22.03.2024 24.03.2024 3 Days

Task 11 Submitting the Proposal 25.03.2024 25.03.2024 1 Day

Task 12 Reconceptualizing Based 26.03.2024 01.04.2024 7 Days

on Feedback

Task 13 Preparing the Report 02.04.2024 12.05.2024 41 Days

Task 14 Final Editing 13.05.2024 19.05.2024 7 Days

Task 15 Submitting the Report 20.05.2024 20.05.2024 1 Day

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6.0 Conclusion
In conclusion, our research aims to address and bridge the knowledge gap of the employment structure
and the economics zones of Dhaka, Bangladesh. By analyzing the composition, trends and other
influencing factors, we aim to provide valuable insights for formulating evidence-based policies. Our
research has significant outcomes for sustainable development and inclusive growth. By the use of
thorough analysis and comprehensive methodology, we aim to enhance the understanding of geography
and related economics. We are committed to conduct this research with utmost diligence and
professionalism and make meaningful contributions to sustainable development.

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7.0 References
1. BEZA. (2022, August). Sustainable Employment Opportunities and Skills Demand in Economic
Zones. From a2i: https://a2i.gov.bd/wp-content/uploads/2022/09/Sustainable-Employment-
Opportunities-and-Skills-Demand-in-Economic-Zoens.pdf

2. Khan, M. A. ( 2023, December 26). How Bangladesh can benefit from economic zone development.
From The Business Standard: https://www.tbsnews.net/thoughts/how-bangladesh-can-
benefit-economic-zone-development-764674?amp=

3. Md Hasanur Rahman, S. C. (2022, April 25). The effects of foreign direct investment on export
processing zones in Bangladesh using Generalized Method of Moments Approach. From
ScienceDirect: https://www.sciencedirect.com/science/article/pii/S2590291122000316

4. Md. Shakil Ahmad, T. E. (2017). The Instrumental Relationship of Special Economic Zones and.
Bangladesh Journal of Administration and Management, 1-17.

5. Rifat, A. A. (2024, January). An overview of EPZ Labour Act 2019 and detailed comparison between
Bangladesh Labour Act 2006 and EPZ Labour Act 2019. From ResearchGate:
https://www.researchgate.net/publication/377075891_An_overview_of_EPZ_Labour_Act_2019
_and_detailed_comparison_between_Bangladesh_Labour_Act_2006_and_EPZ_Labour_Act_2019

6. Susanne A. Frick, A. R.-P. (2019, September 02). Are Special Economic Zones in Emerging
Countries a Catalyst for the Growth of Surrounding Areas? From SSRN:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3623043

7. The World Bank. (2021, May 5). Special Economic Zones in Bangladesh: Mobilizing private
investment and creating better jobs. From The World Bank:
https://www.worldbank.org/en/results/2021/05/05/special-economic-zones-in-bangladesh-
mobilizing-private-investment-and-creating-better-jobs

8. World Bank. (2020). The Path to Middle-Income Status. From World Bank:
https://documents1.worldbank.org/curated/en/443041468205169687/pdf/Bangladesh-The-
path-to-middle-income-status-from-an-urban-perspective.pdf

9. Zeng, D. Z. (n.d.). Special Economic Zones:. From UK Govt:

https://assets.publishing.service.gov.uk/media/586f9727e5274a130700012d/PEDL_Synthesis
_Paper_Piece_No_1.pdf