In the face of accelerated economic globalisation many of the industries in economically less
developed countries have become more technology-intensive. Skill formation processes both
inside and outside firms are therefore changing. This study scrutinises such transformations
by comparing - from the perspective of historical institutionalism - the skill formation
regimes of the garment industries in Sri Lanka and Bangladesh. It sheds light on the
differences between the trajectories of the in-firm skill formation regimes of the two
countries and reveals the important part that varying paths of educational development in both
countries have played in shaping these trajectories. At the same time the study shows how in
both countries state-led skill formation regimes have been transformed not only by market
forces and the growing importance of corporate business interests but also by the social
demand for educational credentials.
