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The Garment Industry in Laos: Technological Capabilities, Global Production Chains and Competitiveness

Author

Listed:
  • Vanthana NOLINTHA

    (National Economic Research Institute, Vientiane, Lao PDR)

  • Idris JAJRI

    (Faculty of Economics and Administration, University of Malaya)

Abstract

This article examines the relationship between institutional support and regional production linkages, and technological capabilities and firm performance in the garment industry in Laos. The evidence shows that garment firms in Laos have achieved considerable technological upgrading, and that firm performance and technological capabilities are determined by export-intensity. Firms’ technological capabilities are determined by the quality of host-site institutional support, while foreign firms have invested little to upgrade human capital in Laos. In addition, firms of all ownership structure have invested little in R&D in Laos.

Suggested Citation

  • Vanthana NOLINTHA & Idris JAJRI, 2015. "The Garment Industry in Laos: Technological Capabilities, Global Production Chains and Competitiveness," Working Papers DP-2015-13, Economic Research Institute for ASEAN and East Asia (ERIA).
  • Handle: RePEc:era:wpaper:dp-2015-13
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    File URL: http://www.eria.org/ERIA-DP-2015-13.pdf
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    References listed on IDEAS

    as
    1. Shigehisa Kasahara, 2004. "The Flying Geese Paradigm: A Critical Study Of Its Application To East Asian Regional Development," UNCTAD Discussion Papers 169, United Nations Conference on Trade and Development.
    2. Kojima, Kiyoshi, 2000. "The "flying geese" model of Asian economic development: origin, theoretical extensions, and regional policy implications," Journal of Asian Economics, Elsevier, vol. 11(4), pages 375-401.
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    More about this item

    Keywords

    garment; global production chains; Laos; technological capabilities;
    All these keywords.

    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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