Changes in Trade Policies and the Heterogeneity of Domestic and Multinational Firms’ Strategic Response: The Effects on Firm-Level Capabilities
AbstractAfter the Multi-Fiber Agreement ended in 2005, most Asian-owned subsidiaries exited the Mauritius export processing zone (MEPZ), while most European-owned subsidiaries and domestic firms remained and further integrated their presence in the MEPZ. Based on the heterogeneity of their strategic response to changes in trade policies, we hypothesize that Asian-owned subsidiaries did not, during their operating life-time in the MEPZ, actively engage in creating technological capabilities when compared to their European-owned and domestic counterparts. Our results support our hypothesis and we discuss their serious implications for other Sub-Saharan African textile-based EPZs in connection to the African Growth and Opportunity Act.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal World Development.
Volume (Year): 40 (2012)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/worlddev
Mauritius; textile industry; technological capabilities; domestic firms; foreign subsidiaries; AGOA;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lall, Sanjaya, 1980. "Vertical Inter-Firm Linkages in LDCs: An Empirical Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 42(3), pages 203-26, August.
- Dixit, Avinash K, 1989.
"Entry and Exit Decisions under Uncertainty,"
Journal of Political Economy,
University of Chicago Press, vol. 97(3), pages 620-38, June.
- Harry G. Broadman, 2007. "Africa's Silk Road : China and India's New Economic Frontier," World Bank Publications, The World Bank, number 7186.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005.
"Unemployment: Macroeconomic Performance and the Labour Market,"
Oxford University Press, number 9780199279173.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780198284345.
- Ganeshan Wignaraja, 2002.
"Firm Size, Technological Capabilities and Market-oriented Policies in Mauritius,"
Oxford Development Studies,
Taylor and Francis Journals, vol. 30(1), pages 87-104.
- Wignaraja, Ganeshan, 2001. "Firm Size, Technological Capabilities and Market-Oriented Policies in Mauritius," Discussion Papers 1, United Nations University, Institute for New Technologies.
- Dixit, Avinash K, 1989. "Hysteresis, Import Penetration, and Exchange Rate Pass-Through," The Quarterly Journal of Economics, MIT Press, vol. 104(2), pages 205-28, May.
- Jens Andersson & Federico Bonaglia & Kiichiro Fukasaku & Caroline Lesser, 2005.
"Trade And Structural Adjustment Policies In Selected Developing Countries,"
Development and Comp Systems
- Jens Andersson & Federico Bonaglia & Kiichiro Fukasaku & Caroline Lesser, 2005. "Trade and Structural Adjustment Policies in Selected Developing Countries," OECD Development Centre Working Papers 245, OECD Publishing.
- Sanjaya Lall and Manuel Albaladejo (QEH), .
"China’s Competitive Performance: A Threat To East Asian Manufactured Exports?,"
QEH Working Papers
qehwps110, Queen Elizabeth House, University of Oxford.
- Lall, Sanjaya & Albaladejo, Manuel, 2004. "China's Competitive Performance: A Threat to East Asian Manufactured Exports?," World Development, Elsevier, vol. 32(9), pages 1441-1466, September.
- Figueiredo, Paulo N., 2008. "Industrial Policy Changes and Firm-Level Technological Capability Development: Evidence from Northern Brazil," World Development, Elsevier, vol. 36(1), pages 55-88, January.
- Cammett, Melani, 2007. "Business-Government Relations and Industrial Change: The Politics of Upgrading in Morocco and Tunisia," World Development, Elsevier, vol. 35(11), pages 1889-1903, November.
- Rasiah, Rajah & Gachino, Geoffrey, 2004.
"Are Foreign Firms More Productive, and Export and Technology Intensive, than Local Firms in Kenyan Manufacturing?,"
10, United Nations University, Institute for New Technologies.
- Rajah Rasiah & Geoffrey Gachino, 2005. "Are Foreign Firms More Productive and Export- and Technology-intensive than Local Firms in Kenyan Manufacturing?," Oxford Development Studies, Taylor and Francis Journals, vol. 33(2), pages 211-227.
- Arvind Subramanian & Aaditya Mattoo & Devesh Roy, 2002.
"The Africa Growth and Opportunity Act and Its Rules of Origin: Generosity Undermined?,"
IMF Working Papers
02/158, International Monetary Fund.
- Aaditya Mattoo & Devesh Roy & Arvind Subramanian, 2003. "The Africa Growth and Opportunity Act and its Rules of Origin: Generosity Undermined?," The World Economy, Wiley Blackwell, vol. 26(6), pages 829-851, 06.
- Mattoo, Aaditya & Roy, Devesh & Subramanian, Arvind, 2002. "The Africa Growth and Opportunity Act and its rules of origin : generosity undermined?," Policy Research Working Paper Series 2908, The World Bank.
- Romijn, Henny, 1997. "Acquisition of technological capability in development: A quantitative case study of Pakistan's capital goods sector," World Development, Elsevier, vol. 25(3), pages 359-377, March.
- Wignaraja, Ganeshan, 2008. "Foreign ownership, technological capabilities and clothing exports in Sri Lanka," Journal of Asian Economics, Elsevier, vol. 19(1), pages 29-39, February.
- Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
- Kaplinsky, Raphael & Morris, Mike, 2008. "Do the Asian Drivers Undermine Export-oriented Industrialization in SSA," World Development, Elsevier, vol. 36(2), pages 254-273, February.
- Baldwin, Richard & Krugman, Paul, 1989.
"Persistent Trade Effects of Large Exchange Rate Shocks,"
The Quarterly Journal of Economics,
MIT Press, vol. 104(4), pages 635-54, November.
- Richard Baldwin & Paul R. Krugman, 1986. "Persistent Trade Effects of Large Exchage Rate Shocks," NBER Working Papers 2017, National Bureau of Economic Research, Inc.
- Christel Lane & Jocelyn Probert, 2004. "Between The Global And The Local: A Comparison Of The British And German Clothing Industry," ESRC Centre for Business Research - Working Papers wp283, ESRC Centre for Business Research.
- Phelps, Nicholas A. & Stillwell, John C.H. & Wanjiru, Roseline, 2009. "Broken Chain? AGOA and Foreign Direct Investment in the Kenyan Clothing Industry," World Development, Elsevier, vol. 37(2), pages 314-325, February.
- Cling, Jean-Pierre & Razafindrakoto, Mireille & Roubaud, Francois, 2005. "Export processing zones in Madagascar: a success story under threat?," World Development, Elsevier, vol. 33(5), pages 785-803, May.
- Gottfries, Nils & Horn, Henrik, 1987. "Wage Formation and the Persistence of Unemployment," Economic Journal, Royal Economic Society, vol. 97(388), pages 877-84, December.
- Biggs, T. & Shah, M. & Srivastava, P., 1995. "Technological Capabilities and Learning in African Enterprises," Papers 288, World Bank - Technical Papers.
- Greaney, Theresa M., 2000. "Righting past wrongs: can import promotion policies counter hysteresis from past trade protection in the presence of switching costs?," Japan and the World Economy, Elsevier, vol. 12(3), pages 211-227, September.
- Kathuria, Sanjay & Martin, Will & Bhardwaj, Anjali, 2001. "Implications for South Asian countries for abolishing the Multifibre Arrangement," Policy Research Working Paper Series 2721, The World Bank.
- John H Dunning, 1995. "Reappraising the Eclectic Paradigm in an Age of Alliance Capitalism," Journal of International Business Studies, Palgrave Macmillan, vol. 26(3), pages 461-491, September.
- Hobday, Michael & Rush, Howard, 2007. "Upgrading the technological capabilities of foreign transnational subsidiaries in developing countries: The case of electronics in Thailand," Research Policy, Elsevier, vol. 36(9), pages 1335-1356, November.
- Richard Baldwin, 1989. "Sunk-Cost Hysteresis," NBER Working Papers 2911, National Bureau of Economic Research, Inc.
- Kankesu Jayanthakumaran, 2003. "Benefit-Cost Appraisals of Export Processing Zones: A Survey of the Literature," Development Policy Review, Overseas Development Institute, vol. 21(1), pages 51-65, 01.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.