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FDI, AGOA and Manufactured Exports by a Landlocked, Least Developed African Economy: Lesotho

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  • Sanjaya Lall

Abstract

Lesotho, a resource-poor country located inside South Africa, is now Africa's largest exporter of apparel to the US. Its performance, very unusual for Africa, relies heavily on Asian investors and trade privileges. This article traces the origins of FDI in Lesotho and the determinants of its export competitiveness, showing that apparel production suffers from low productivity, poor skills and weak local links. Its prospects after AGOA (the African Growth and Opportunities Act) remain uncertain unless the government addresses these structural problems. Lesotho holds important lessons for industrial development in Africa, going beyond creating a good investment environment.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00220380500155254
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Bibliographic Info

Article provided by Taylor and Francis Journals in its journal Journal of Development Studies.

Volume (Year): 41 (2005)
Issue (Month): 6 ()
Pages: 998-1022

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Handle: RePEc:taf:jdevst:v:41:y:2005:i:6:p:998-1022

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Cited by:
  1. Pierre-Louis Vezina & Lorenzo Rotunno & Zheng Wang, 2012. "The rise and fall of (Chinese) African apparel exports," Economics Series Working Papers WPS/2012-12, University of Oxford, Department of Economics.
  2. Sanjaya Lall & Manuel Albaladejo & Jinkang Zhang, 2004. "Mapping fragmentation: Electronics and automobiles in East Asia and Latin America," Oxford Development Studies, Taylor and Francis Journals, vol. 32(3), pages 407-432.
  3. Garth Frazer & Johannes Van Biesebroeck, 2007. "Trade Growth under the African Growth and Opportunity Act," NBER Working Papers 13222, National Bureau of Economic Research, Inc.
  4. Cornelia Staritz, 2011. "Making the Cut? Low-Income Countries and the Global Clothing Value Chain in a Post-Quota and Post-Crisis World," World Bank Publications, The World Bank, number 2547, 5.
  5. Sanjaya Lall (QEH), . "Is African Industry Competing?," QEH Working Papers qehwps122, Queen Elizabeth House, University of Oxford.
  6. 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.

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