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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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    References listed on IDEAS

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    1. Rajah Rasiah, 2010. "Are electronics firms in Malaysia catching up in the technology ladder?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 15(3), pages 301-319.
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    3. 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.
    4. Thomas Vollrath, 1991. "A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 127(2), pages 265-280, June.
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    Cited by:

    1. Molina-Sánchez, Rubén & García-Pérez-de-Lema, Domingo & López-Salazar, Alejandra & Godínez-López, Roberto, 2022. "Determining factors in MSMEs success: An empirical study in Mexico," Small Business International Review, Asociación Española de Contabilidad y Administración de Empresas - AECA, vol. 6(1), pages 384-384, January.
    2. Redwanur Rahman & Saleh Shahriar & Sokvibol Kea, 2019. "Determinants of Exports: A Gravity Model Analysis of the Bangladeshi Textile and Clothing Industries," FIIB Business Review, , vol. 8(3), pages 229-244, September.

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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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