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Illusory Competitiveness: The Apparel Assembly Model of the Caribbean Basin

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  • Mortimer, Michael

Abstract

Exports of apparel represent the principal link of the Caribbean Basin to the international economy. These exports arise from a combination of factors, including low salaries, tax incentives, and preferential access to the North American market designed to assist US apparel firms compete better against Asian imports in their own market. The weakness of this model is that it produces an illusory competitiveness based on artificial advantages, not an authentic competitiveness that improves the productive base of the economy by way of the transfer of modern technologies, the creation of deeper linkages, more specialized training and enterprise development

Suggested Citation

  • Mortimer, Michael, 2003. "Illusory Competitiveness: The Apparel Assembly Model of the Caribbean Basin," UNU-INTECH Discussion Paper Series 2003-11, United Nations University - INTECH.
  • Handle: RePEc:unm:unuint:200311
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    File URL: https://www.merit.unu.edu/publications/discussion-papers/2003-11.pdf
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    References listed on IDEAS

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    1. Mortimore, Michael & Vergara, Sebastián & Katz, Jorge, 2001. "La competitividad internacional y el desarrollo nacional: implicancias para la política de inversión extranjera directa (IED) en América Latina," Desarrollo Productivo 107, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Timothy J. Sturgeon, 2002. "Modular production networks: a new American model of industrial organization," Industrial and Corporate Change, Oxford University Press, vol. 11(3), pages 451-496, June.
    3. Willmore, Larry, 1996. "Export processing in the Caribbean: lessons from four case studies," Series Históricas 42, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    4. Mortimore, Michael & Peres Núñez, Wilson, 2001. "Corporate competitiveness in Latin America and the Caribbean," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    5. Mortimore, Michael & Duthoo, Henk & Guerrero, José Alfredo, 1995. "Informe sobre la competitividad internacional de las zonas francas en la República Dominicana," Desarrollo Productivo 22, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    6. Mortimore, Michael & Zamora Leiva, Ronney, 1998. "La competitividad internacional de la industria de prendas de vestir en Costa Rica," Desarrollo Productivo 46, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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    More about this item

    Keywords

    Exports; Apparel; Caribbean; International Trade; Econometric Models;
    All these keywords.

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