IDEAS home Printed from https://ideas.repec.org/b/wbk/wbpubs/2547.html
   My bibliography  Save this book

Making the Cut? Low-Income Countries and the Global Clothing Value Chain in a Post-Quota and Post-Crisis World

Author

Listed:
  • Cornelia Staritz

Abstract

The clothing sector has traditionally been a gateway to export diversification and industrial development for low-income countries (LICs) but recent developments may condition this role. In most developed and middle-income countries, the clothing sector was central in the industrialization process. Recently, however, the environment for global clothing trade has changed significantly, driven by the rise of organizational buyers and their global sourcing strategies, the phase-out of the Multi-Fibre Arrangement (MFA) at the end of 2004, and the global economic crisis in 2008-09. Changes in global supply and demand structures have increased competition between LIC exporters but also offer new opportunities in fast-growing emerging markets. The second half of the twentieth century was characterized by a rising demand for clothing and the replacement of developed countries' domestic production by imports from developing countries. Today, however, demand has stagnated and import penetration levels are close to 100 percent in most developed countries. Thus, the growth of clothing exports from a few developing countries largely comes at the expense of clothing producers in other developing countries. The heightened competition between developing countries has been reinforced by overcapacity in the global clothing industry since the MFA phase-out and has been accelerated by the global economic crisis. However, changes in demand structures post-crisis may lead to new opportunities. While import demand for clothing in the Unites States, the European Union (EU), and Japan might stagnate, demand will increase in fast-growing emerging markets.

Suggested Citation

  • 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.
  • Handle: RePEc:wbk:wbpubs:2547
    as

    Download full text from publisher

    File URL: https://openknowledge.worldbank.org/bitstream/handle/10986/2547/588510PUB0Maki101public10BOX353816B.pdf?sequence=1
    Download Restriction: no

    References listed on IDEAS

    as
    1. Tewari Meenu, 2006. "Is Price and Cost Competitiveness Enough for Apparel Firms to Gain Market Share in the World after Quotas? A Review," Global Economy Journal, De Gruyter, vol. 6(4), pages 1-48, November.
    2. Ahmed, Nazneen & Peerlings, Jack H.M., 2009. "Addressing Workers' Rights in the Textile and Apparel Industries: Consequences for the Bangladesh Economy," World Development, Elsevier, vol. 37(3), pages 661-675, March.
    3. Brenton, Paul & Hoppe, Mombert, 2007. "Clothing and export diversification : still a route to growth for low-income countries ?," Policy Research Working Paper Series 4343, The World Bank.
    4. Palpacuer, Florence & Gibbon, Peter & Thomsen, Lotte, 2005. "New Challenges for Developing Country Suppliers in Global Clothing Chains: A Comparative European Perspective," World Development, Elsevier, vol. 33(3), pages 409-430, March.
    5. Jörg Mayer & Arunas Butkevicius & Ali Kadri & Juan Pizarro, 2004. "Dynamic products in world exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 140(3), pages 762-795, September.
    6. Frederick H Abernathy & Anthony Volpe & David Weil, 2006. "The future of the apparel and textile industries: prospects and choices for public and private actors," Environment and Planning A, Pion Ltd, London, vol. 38(12), pages 2207-2232, December.
    7. 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.
    8. Bob Begg & John Pickles & Adrian Smith, 2003. "Cutting it: European integration, trade regimes, and the reconfiguration of East - Central European apparel production," Environment and Planning A, Pion Ltd, London, vol. 35(12), pages 2191-2207, December.
    9. World Bank, 2007. "World Development Indicators 2007," World Bank Publications, The World Bank, number 8150, January.
    10. Yamagata, Tatsufumi, 2006. "The Garment Industry in Cambodia: Its Role in Poverty Reduction through Export-Oriented Development," IDE Discussion Papers 62, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    11. Sanjaya Lall, 2005. "FDI, AGOA and Manufactured Exports by a Landlocked, Least Developed African Economy: Lesotho," Journal of Development Studies, Taylor & Francis Journals, vol. 41(6), pages 998-1022.
    12. Meenu Tewari, 2008. "Deepening Intraregional Trade and Investment in South Asia - The Case of the Textiles and Clothing Industry," Trade Working Papers 22265, East Asian Bureau of Economic Research.
    13. Meenu Tewari, 2008. "Deepening Intraregional Trade and Investment in South Asia: The Case of the Textiles and Clothing Industry," Indian Council for Research on International Economic Relations, New Delhi Working Papers 213, Indian Council for Research on International Economic Relations, New Delhi, India.
    14. Kaplinsky, Raphael & Messner, Dirk, 2008. "Introduction: The Impact of Asian Drivers on the Developing World," World Development, Elsevier, vol. 36(2), pages 197-209, February.
    15. Gibbon, Peter, 2003. "The African Growth and Opportunity Act and the Global Commodity Chain for Clothing," World Development, Elsevier, vol. 31(11), pages 1809-1827, November.
    16. Jennifer Bair, 2006. "Regional trade and production blocs in a global industry: towards a comparative framework for research," Environment and Planning A, Pion Ltd, London, vol. 38(12), pages 2233-2252, December.
    17. Milberg, William & Winkler, Deborah, 2010. "Trade crisis and recovery : restructuring of global value chains," Policy Research Working Paper Series 5294, The World Bank.
    18. 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.
    19. Kaoru Natsuda & Kenta Goto & John Thoburn, 2010. "Challenges to the Cambodian Garment Industry in the Global Garment Value Chain," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 22(4), pages 469-493, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dennis Arnold, 2013. "Workers’ agency and re-working power relations in Cambodia’s garment industry," Global Development Institute Working Paper Series ctg-2013-24, GDI, The University of Manchester.
    2. Arianna Rossi, 2015. "Better Work: harnessing incentives and influencing policy to strengthen labour standards compliance in global production networks," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(3), pages 505-520.
    3. 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.
    4. 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.
    5. Plank, Leonhard & Rossi, Arianna & Staritz, Cornelia, 2012. "Workers and social upgrading in "fast fashion": The case of the apparel industry in Morocco and Romania," Working Papers 33, Österreichische Forschungsstiftung für Internationale Entwicklung (ÖFSE) / Austrian Foundation for Development Research.
    6. John Pickles & Leonhard Plank & Cornelia Staritz & Amy Glasmeier, 2015. "Trade policy and regionalisms in global clothing production networks," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(3), pages 381-402.
    7. Cornelia Staritz & Mike Morris, 2013. "Local embeddedness and economic and social upgrading in Madagascar’s export apparel industry," Brooks World Poverty Institute Working Paper Series ctg-2013-21, BWPI, The University of Manchester.
    8. Savchenko, Yevgeniya & Acevedo, Gladys Lopez, 2012. "Female wages in the apparel industry post-MFA : the cases of Cambodia and Sri Lanka," Policy Research Working Paper Series 6061, The World Bank.
    9. Prema-chandra Athukorala, 2017. "Manufacturing exports from Sri Lanka: opportunities, achievements and policy options," Departmental Working Papers 2017-03, The Australian National University, Arndt-Corden Department of Economics.
    10. 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.
    11. John Pickles, 2012. "South African horticulture: opportunities and challenges for economic and social upgrading in value chains," Global Development Institute Working Paper Series ctg-2012-13, GDI, The University of Manchester.
    12. Thomas Bernhardt, 2013. "Developing countries in the global apparel value chain: a tale of upgrading and downgrading experiences," Global Development Institute Working Paper Series ctg-2013-22, GDI, The University of Manchester.
    13. Leonhard Plank & Cornelia Staritz, 2015. "Global competition, institutional context and regional production networks: up- and downgrading experiences in Romania’s apparel industry," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(3), pages 421-438.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbpubs:2547. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Breineder). General contact details of provider: http://edirc.repec.org/data/dvewbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.