Transaction Costs and Clothing and Textile Trade in SADC
AbstractThis working paper looks at clothing and textile trade in the Southern African Development Community (SADC). Clothing and textile production is important in terms of employment and development, and thus they have been priority sectors since the SADCC inception in 1980. Evidence of intra-regional trade is presented. The scope for increased trade is then discussed and transaction costs are examined as one of the major factors restricting this increased trade. The original aim of this paper was to use a transport model to calculate the optimal pattern of clothing, textiles and fibre trade within the SADC region. This has not proved feasible and thus this paper now examines the Southern African Customs Union’s (SACU) trade with SADC and identifies patterns and trends within a transaction cost economics framework. SACU’s total exports of textiles, fabrics and clothing to SADC underperformed between 1989 and 1998, in contrast to the import sector, which performed quite well during this period. Transaction costs are significant barriers to trade in the SADC region. The paper examines various transaction costs, including inland transport costs, shipping constraints, tariffs and non-tariff barriers and shows that trade liberalisation is an important policy mechanism of reducing transaction costs. The paper analyses various trade agreements that offer great potential for improving the trade environment in the SADC region.
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.
Bibliographic InfoPaper provided by University of Cape Town, Development Policy Research Unit in its series Working Papers with number 02064.
Length: 31 pages
Date of creation: Apr 2002
Date of revision:
Publication status: Published in Working Paper Series by the Development Policy Research Unit, April 2002, pages 1-31
South Africa: Clothing and textile production in the SADC region; textile trade;
Find related papers by JEL classification:
- A1 - General Economics and Teaching - - General Economics
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Waseema Petersen).
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.