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Broken Chain? AGOA and Foreign Direct Investment in the Kenyan Clothing Industry

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  • Phelps, Nicholas A.
  • Stillwell, John C.H.
  • Wanjiru, Roseline

Abstract

Summary Drawing upon survey and interview research covering 23 of an estimated total of 35 clothing manufacturing establishments operating in Kenya as well as interviews with the policy community, this paper examines the local economic development impacts associated with the recent AGOA-prompted re-birth of the clothing industry in Kenya just after its recent high watermark in 2003. It provides evidence of the characteristics of these manufacturing establishments as well as evidence of the multiple and interconnected failures on the part of Government, parent companies, agents, and customers to promote the longer-term sustainability of the industry. As such, it provides further case study evidence of Africa's uniquely problematic incorporation into global commodity chains.

Suggested Citation

  • Phelps, Nicholas A. & Stillwell, John C.H. & Wanjiru, Roseline, 2009. "Broken Chain? AGOA and Foreign Direct Investment in the Kenyan Clothing Industry," World Development, Elsevier, vol. 37(2), pages 314-325, February.
  • Handle: RePEc:eee:wdevel:v:37:y:2009:i:2:p:314-325
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    References listed on IDEAS

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    1. Sanjaya Lall, 2005. "FDI, AGOA and Manufactured Exports by a Landlocked, Least Developed African Economy: Lesotho," Journal of Development Studies, Taylor & Francis Journals, pages 998-1022.
    2. Asiedu, Elizabeth, 2002. "On the Determinants of Foreign Direct Investment to Developing Countries: Is Africa Different?," World Development, Elsevier, pages 107-119.
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    Citations

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    Cited by:

    1. Staritz, Cornelia, 2012. "Apparel exports - still a path for industrial development? Dynamics in apparel global value chains and implications for low-income countries," Working Papers 34, Österreichische Forschungsstiftung für Internationale Entwicklung (ÖFSE) / Austrian Foundation for Development Research.
    2. Rotunno, Lorenzo & Vézina, Pierre-Louis & Wang, Zheng, 2013. "The rise and fall of (Chinese) African apparel exports," Journal of Development Economics, Elsevier, pages 152-163.
    3. 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.
    4. Staritz, Cornelia & Morris, Mike, 2012. "Local embeddedness, upgrading, and skill development: Global value chains and foreign direct investment in Lesotho's apparel industry," Working Papers 32, Österreichische Forschungsstiftung für Internationale Entwicklung (ÖFSE) / Austrian Foundation for Development Research.
    5. Morris, Mike & Staritz, Cornelia, 2014. "Industrialization Trajectories in Madagascar’s Export Apparel Industry: Ownership, Embeddedness, Markets, and Upgrading," World Development, Elsevier, pages 243-257.
    6. Rotunno, Lorenzo & Vézina, Pierre-Louis & Wang, Zheng, 2013. "The rise and fall of (Chinese) African apparel exports," Journal of Development Economics, Elsevier, vol. 105(C), pages 152-163.

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