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The Promise and Peril of Post-MFA Apparel Production

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  • Lopez-Acevedo, Gladys

    ()
    (World Bank)

  • Robertson, Raymond
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    Abstract

    For anyone concerned about the effects of globalization on poverty in developing countries, the apparel sector in general and the end of the Multi-Fibre Arrangement (MFA) and the Agreement on Textiles and Clothing (ATC) in particular are key areas of interest. As an important first step toward industrialization, the apparel sector continues to provide an alternative for workers in low-wage agriculture or service jobs (especially less-skilled workers and women), even after other manufacturing sectors are established. By providing formal labor experience, these jobs hold the promise of lifelong participation in the labor market, which in the long term can help workers move out of poverty. Therefore, understanding how employment, wage premiums, and the structure of the apparel industry have changed after the end of the MFA and ATC is important to appreciate the effects of this significant policy change on poverty.

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    File URL: http://siteresources.worldbank.org/EXTPREMNET/Resources/EP84.pdf
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    Bibliographic Info

    Article provided by The World Bank in its journal Economic Premise.

    Volume (Year): (2012)
    Issue (Month): 84 (May)
    Pages: 1-4

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    Handle: RePEc:wbk:prmecp:ep84

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    1. Raymond Robertson & Drusilla Brown & Gaëlle Pierre & María Laura Sanchez-Puerta, 2009. "Globalization, Wages, and the Quality of Jobs : Five Country Studies," World Bank Publications, The World Bank, number 2654, October.
    2. Michelle Rendall, 2010. "Brain versus brawn: the realization of women's comparative advantage," IEW - Working Papers 491, Institute for Empirical Research in Economics - University of Zurich.
    3. Ernesto Aguayo-Tellez & Jim Airola & Chinhui Juhn, 2010. "Did Trade Liberalization Help Women? The Case of Mexico in the 1990s," NBER Working Papers 16195, National Bureau of Economic Research, Inc.
    4. Philip Sauré & Hosny Zoabi, 2009. "Effects of Trade on Female Labor Force Participation," Working Papers 2009-12, Swiss National Bank.
    5. de Hoyos, Rafael E. & Bussolo, Maurizio & Nunez, Oscar, 2008. "Can Maquila Booms Reduce Poverty? Evidence from Honduras," Policy Research Working Paper Series 4789, The World Bank.
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