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The Ending of the Multi-Fibre Agreement and Innovation in Sri Lankan Textile and Clothing Industry: Trade and Innovation Project - Case Study No. 3

Author

Listed:
  • Janaka Wijayasiri

    (Institute of Policy Studies)

  • Jagath Dissanayake

    (Institute of Policy Studies)

Abstract

This paper is one of five case studies which is a part of a larger project looking at the various effects that trade and investment can have on innovation. This paper studies the effect of the ending of the Multi-Fibre Agreement (MFA) on innovation in the Sri Lankan textile and clothing sector. The ending of the quota system under the MFA led to an increase in the US and EU markets which has motivated a large number of innovations in the Sri Lankan textile and clothing sector. Some large companies have become a total services provider while some are trying to establish their own brands. Product innovations with foreign partners, process innovations such as introduction of CAD/CAM and various marketing and organisational innovations have been implemented.

Suggested Citation

  • Janaka Wijayasiri & Jagath Dissanayake, 2008. "The Ending of the Multi-Fibre Agreement and Innovation in Sri Lankan Textile and Clothing Industry: Trade and Innovation Project - Case Study No. 3," OECD Trade Policy Papers 75, OECD Publishing.
  • Handle: RePEc:oec:traaab:75-en
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    File URL: http://dx.doi.org/10.1787/240487016735
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