FDI, AGOA And Manufactured Exports From A Land-Locked, Least-Developed African Economy: Lesotho
Lesotho, a small, mountainous and resource poor country inside South Africa, has emerged as the largest and fastest growing exporter of apparel from Sub-Saharan Africa to the US. Its rapid manufacturing growth has been driven by inflows of export-oriented foreign direct investment. This paper explores this unusual experience against the setting of the dismal record of industrial growth and competitiveness in Sub-Saharan Africa. It traces the origins of apparel-based FDI in Lesotho and the critical role of trade preferences in stimulating its exports and notes the limited integration of foreign affiliates into the local economy. The recent export spurt reflects first mover advantages in apparel manufacture, but long-term prospects, after trade preferences, remain dubious unless there is a significant improvement in skills and productivity. The experience has important policy lessons for the Lesotho government, foreign investors and international community in terms of stimulating competitive industrial development in Africa.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Postal: Queen Elizabeth House 3 Mansfield Road, Oxford, OX1 3TB United Kingdom|
Phone: +44 (1865) 281800
Fax: +44 (1865) 281801
Web page: http://www.qeh.ox.ac.uk/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:rus:hseeco:123147 is not listed on IDEAS
- Aaditya Mattoo & Devesh Roy & Arvind Subramanian, 2003.
"The Africa Growth and Opportunity Act and its Rules of Origin: Generosity Undermined?,"
The World Economy,
Wiley Blackwell, vol. 26(6), pages 829-851, 06.
- Mattoo, Aaditya & Roy, Devesh & Subramanian, Arvind, 2002. "The Africa Growth and Opportunity Act and its rules of origin : generosity undermined?," Policy Research Working Paper Series 2908, The World Bank.
- Arvind Subramanian & Aaditya Mattoo & Devesh Roy, 2002. "The Africa Growth and Opportunity Act and its Rules of Origin; Generosity Undermined?," IMF Working Papers 02/158, International Monetary Fund.
- Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
- Simon Roberts & John Thoburn, 2003. "Adjusting to Trade Liberalisation: The Case of Firms in the South African Textile Sector," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 12(1), pages 74-103, March.
When requesting a correction, please mention this item's handle: RePEc:qeh:qehwps:qehwps109. 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: (Rachel Crawford)
If references are entirely missing, you can add them using this form.