Clothing and export diversification : still a route to growth for low-income countries ?
AbstractCan the clothing sector be a driver of export diversification and growth for today's low-income countries as it was in the past for countries that have graduated into middle income? This paper assesses this issue taking into account key changes to the market for clothing: the emergence of India and especially China as exporting countries; the rise of global production chains; the removal of quotas from the global trading regime but the continued presence of high tariffs and substantial trade preferences; the increasing importance of large buyers in developed countries and their concerns regarding risk and reputation; and the increasing importance of time in defining sourcing decisions. To assess the importance of the factors shaping the global clothing market, the authors estimate a gravity model to explain jointly the propensity to export clothing and the magnitude of exports from developing countries to the E U and US markets. This analysis identifies the quality of governance as an important determinant of sourcing decisions and that there appears to be a general bias against sourcing apparel from African countries, which is only partially overcome by trade preferences.
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 The World Bank in its series Policy Research Working Paper Series with number 4343.
Date of creation: 01 Sep 2007
Date of revision:
Economic Theory&Research; Free Trade; Trade Policy; Emerging Markets; Transport Economics Policy&Planning;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-09-24 (All new papers)
- NEP-CWA-2007-09-24 (Central & Western Asia)
- NEP-DEV-2007-09-24 (Development)
- NEP-INT-2007-09-24 (International Trade)
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.:
- Rubinstein, Yona & Helpman, Elhanan & Melitz, Marc, 2008.
"Estimating Trade Flows: Trading Partners and Trading Volumes,"
3228230, Harvard University Department of Economics.
- Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, MIT Press, vol. 123(2), pages 441-487, 05.
- Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2007. "Estimating Trade Flows: Trading Partners and Trading Volumes," NBER Working Papers 12927, National Bureau of Economic Research, Inc.
- Chisik, Richard, 2003.
"Export industry policy and reputational comparative advantage,"
Journal of International Economics,
Elsevier, vol. 59(2), pages 423-451, March.
- Richard Chisik, 2010. "Export Industry Policy and Reputational Comparative Advantage," Working Papers 017, Ryerson University, Department of Economics.
- Hummels, David, 2001.
"Time as a Trade Barrier,"
GTAP Working Papers
1152, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Carolyn Evans & James Harrigan, 2003.
"Distance, time, and specialization,"
International Finance Discussion Papers
766, Board of Governors of the Federal Reserve System (U.S.).
- Carolyn L. Evans & James Harrigan, 2003. "Distance, Time, and Specialization," NBER Working Papers 9729, National Bureau of Economic Research, Inc.
- James Harrigan & Carolyn Evans, 2004. "Distance, Time and Specialization," Econometric Society 2004 North American Winter Meetings 640, Econometric Society.
- Naila Kabeer & Simeen Mahmud, 2004. "Globalization, gender and poverty: Bangladeshi women workers in export and local markets," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(1), pages 93-109.
- Habiyaremye, Alexis & Ziesemer, Thomas, 2006.
"Absorptive Capacity and Export Diversification in Sub-Saharan African Countries,"
UNU-MERIT Working Paper Series
030, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
- Habiyaremye, Alexis & Ziesemer, Thomas, 2006. "Absorptive Capacity and Export Diversification in Sub-Saharan African Countries," MERIT Working Papers 030, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- 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.
- Gebreeyesus, Mulu, 2013.
"The end of the multifibre arrangement (MFA) and the heterogeneous performance of quota-constrained countries,"
UNU-MERIT Working Paper Series
035, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
- Gebreeyesus, Mulu, 2013. "The end of the multifibre arrangement (MFA) and the heterogeneous performance of quota-constrained countries," MERIT Working Papers 035, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Brenton, Paul & Hoppe, Mombert & Newfarmer, Richard, 2008. "Economic partnership agreements and the export competitiveness of Africa," Policy Research Working Paper Series 4627, The World Bank.
- Bala Ramasamy & Matthew Yeung, 2008. "Does China have a competitive advantage in the low-end garment industry? A case study approach," STUDIES IN TRADE AND INVESTMENT, in: Unveiling Protectionism: Regional Responses to Remaining Barriers in the Textiles and Clothing Trade United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
- Brenton, Paul & Newfarmer, Richard & Walkenhorst, Peter, 2009. "Avenues for Export Diversification: Issues for Low-Income Countries," MPRA Paper 22758, University Library of Munich, Germany.
- 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, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.