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Clothing Export from sub-Saharan Africa : Impact on Poverty and Potential for Growth

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Author Info
Fukunishi, Takahiro
Abstract

Increases in clothing exports after 2000 signaled the first incidence of large-scale manufacturing exports from sub-Saharan Africa. Using firm-level information, this paper explores the potential of clothing exports for poverty reduction and further growth as seen in other low income countries. It shows that the garment exporting industries in Kenya and Madagascar have contributed poverty reduction in the short term by providing mass employment for female and less educated workers with wages beyond the poverty line. However, the long-term impact is not certain. High production costs and limited development of local firms weaken potential for further growth in the competitive world market. Upgrading of the market and improvement of efficiency are required to remain competitive for African industries, and governmental support for local participation are needed to facilitate technology transfer.

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File URL: http://ir.ide.go.jp/dspace/bitstream/2344/781/1/ARRIDE_Discussion_No.163_fukunishi.pdf
File Format: application/pdf
File Function: First version, 2008
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Publisher Info
Paper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 163.

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Date of creation: Jul 2008
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Publication status: Published in IDE Discussion Paper. No. 163. 2008.7
Handle: RePEc:jet:dpaper:dpaper163

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Related research
Keywords: Manufacturing exports; Poverty reduction; FDI spillover; Productivity; Textile industry; Africa;

Find related papers by JEL classification:
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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