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Industrialization Trajectories in Madagascar’s Export Apparel Industry: Ownership, Embeddedness, Markets, and Upgrading

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  • Morris, Mike
  • Staritz, Cornelia

Abstract

The paper shows the importance of ownership as a conceptual category within global value chain (GVC) analysis through analyzing firm types based on their GVC linkage, market access, and ownership profile in Madagascar’s apparel export industry. The central argument is that ownership leading to variances in embeddedness matters. Ownership characteristics of supplier firms shape the ability to shift between different end markets, respond to lead firm requirements, and pursue upgrading. With Madagascar’s exclusion from AGOA benefits this has enabled locally embedded European/French diaspora-owned firms and regionally embedded Mauritian-owned firms to shift market channels and upgrade while Asian-owned firms largely exited the industry.

Suggested Citation

  • Morris, Mike & Staritz, Cornelia, 2014. "Industrialization Trajectories in Madagascar’s Export Apparel Industry: Ownership, Embeddedness, Markets, and Upgrading," World Development, Elsevier, vol. 56(C), pages 243-257.
  • Handle: RePEc:eee:wdevel:v:56:y:2014:i:c:p:243-257
    DOI: 10.1016/j.worlddev.2013.10.030
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    References listed on IDEAS

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    1. Martin Hess & Henry Wai-Chung Yeung, 2006. "Whither global production networks in economic geography? Past, present, and future," Environment and Planning A, Pion Ltd, London, vol. 38(7), pages 1193-1204, July.
    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.
    3. Staritz, Cornelia & Morris, Mike, 2013. "Local embeddedness and economic and social upgrading in Madagascar's export apparel industry," Working Papers 38, Österreichische Forschungsstiftung für Internationale Entwicklung (ÖFSE) / Austrian Foundation for Development Research.
    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.
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    Cited by:

    1. repec:pal:eurjdr:v:30:y:2018:i:3:d:10.1057_s41287-017-0112-5 is not listed on IDEAS
    2. Raphael Kaplinsky & Mike Morris, 2016. "Thinning and Thickening: Productive Sector Policies in The Era of Global Value Chains," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 28(4), pages 625-645, September.
    3. Rousseau, Karen & Gautier, Denis & Wardell, D. Andrew, 2015. "Coping with the Upheavals of Globalization in the Shea Value Chain: The Maintenance and Relevance of Upstream Shea Nut Supply Chain Organization in Western Burkina Faso," World Development, Elsevier, vol. 66(C), pages 413-427.
    4. repec:eee:wdevel:v:98:y:2017:i:c:p:536-554 is not listed on IDEAS
    5. Staritz, Cornelia & Frederick, Stacey, 2016. "Harnessing foreign direct investment for local development? Spillovers in apparel global value chains in sub-Saharan Africa," Working Papers 59, Österreichische Forschungsstiftung für Internationale Entwicklung (ÖFSE) / Austrian Foundation for Development Research.
    6. Plank, Leonhard & Staritz, Cornelia, 2014. "Global competition, institutional context, and regional production networks: Up- and downgrading experiences in Romania's apparel industry," Working Papers 50, Österreichische Forschungsstiftung für Internationale Entwicklung (ÖFSE) / Austrian Foundation for Development Research.

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