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Foreign direct investment and local spillovers in the apparel sector in Sub-Saharan Africa

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  • Staritz, Cornelia

Abstract

Foreign direct investment (FDI) in the apparel sector in several Sub-Saharan African (SSA) countries has experienced significant growth in the context of preferential market access. But expectations of FDI leading to spillovers to the local economy and the development of locally-embedded apparel export industries have not materialized. A shift from FDI attraction through fiscal incentives to more strategic industrial policies that target FDI spillovers, local value added and linkages is urgently needed for broader local development effects.

Suggested Citation

  • Staritz, Cornelia, 2013. "Foreign direct investment and local spillovers in the apparel sector in Sub-Saharan Africa," Policy Notes 05/2013, Austrian Foundation for Development Research (ÖFSE).
    • Handle: RePEc:zbw:oefsep:052013
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    1. Kaplinsky, Raphael & Morris, Mike, 2008. "Do the Asian Drivers Undermine Export-oriented Industrialization in SSA," World Development, Elsevier, vol. 36(2), pages 254-273, February.
    2. Mike Morris & Cornelia Staritz & Justin Barnes, 2011. "Value chain dynamics, local embeddedness, and upgrading in the clothing sectors of Lesotho and Swaziland," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 4(1/2/3), pages 96-119.
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    Cited by:

    1. Giovanni Pasquali & Shane Godfrey, 2022. "Governance of Eswatini Apparel Regional Value Chains and the Implications of Covid-19," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(1), pages 473-502, February.
    2. Lawrence Edwards & Robert Z. Lawrence, 2014. "AGOA Rules: The Intended and Unintended Consequences of Special Fabric Provisions," NBER Chapters, in: African Successes, Volume III: Modernization and Development, pages 343-393, National Bureau of Economic Research, Inc.
    3. Giovanni Pasquali & Aarti Krishnan & Jakob Engel, 2021. "Pulling up or binding down: a review of upgrading trajectories in apparel and agro-processing global value chains for developing countries," WIDER Working Paper Series wp-2021-112, World Institute for Development Economic Research (UNU-WIDER).

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