IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/4343.html
   My bibliography  Save this paper

Clothing and export diversification : still a route to growth for low-income countries ?

Author

Listed:
  • Brenton, Paul
  • Hoppe, Mombert

Abstract

Can the clothing sector be a driver of export diversification and growth for today's low-income countries as it was in the past for countries that have graduated into middle income? This paper assesses this issue taking into account key changes to the market for clothing: the emergence of India and especially China as exporting countries; the rise of global production chains; the removal of quotas from the global trading regime but the continued presence of high tariffs and substantial trade preferences; the increasing importance of large buyers in developed countries and their concerns regarding risk and reputation; and the increasing importance of time in defining sourcing decisions. To assess the importance of the factors shaping the global clothing market, the authors estimate a gravity model to explain jointly the propensity to export clothing and the magnitude of exports from developing countries to the E U and US markets. This analysis identifies the quality of governance as an important determinant of sourcing decisions and that there appears to be a general bias against sourcing apparel from African countries, which is only partially overcome by trade preferences.

Suggested Citation

  • Brenton, Paul & Hoppe, Mombert, 2007. "Clothing and export diversification : still a route to growth for low-income countries ?," Policy Research Working Paper Series 4343, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4343
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/09/10/000158349_20070910101411/Rendered/PDF/wps4343.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. David L. Hummels & Georg Schaur, 2013. "Time as a Trade Barrier," American Economic Review, American Economic Association, vol. 103(7), pages 2935-2959, December.
    2. Francois, Joseph & Manchin, Miriam, 2013. "Institutions, Infrastructure, and Trade," World Development, Elsevier, vol. 46(C), pages 165-175.
    3. Chisik, Richard, 2003. "Export industry policy and reputational comparative advantage," Journal of International Economics, Elsevier, vol. 59(2), pages 423-451, March.
    4. Cling, Jean-Pierre & Razafindrakoto, Mireille & Roubaud, Francois, 2005. "Export processing zones in Madagascar: a success story under threat?," World Development, Elsevier, vol. 33(5), pages 785-803, May.
    5. Carolyn L. Evans & James Harrigan, 2003. "Distance, time, and specialization," International Finance Discussion Papers 766, Board of Governors of the Federal Reserve System (U.S.).
    6. Naila Kabeer & Simeen Mahmud, 2004. "Globalization, gender and poverty: Bangladeshi women workers in export and local markets," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(1), pages 93-109.
    7. Wilson,John S. & Mann, Catherine L. & Otsuki, Tsunehiro, 2003. "Trade facilitation and economic development : measuring the impact," Policy Research Working Paper Series 2988, The World Bank.
    8. Habiyaremye, Alexis & Ziesemer, Thomas, 2006. "Absorptive Capacity and Export Diversification in Sub-Saharan African Countries," MERIT Working Papers 030, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, Oxford University Press, pages 441-487.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Massa, Isabella, 2015. "Technological change in developing countries: Trade-offs between economic, social, and environmental sustainability," MERIT Working Papers 051, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. repec:eee:worbus:v:52:y:2017:i:5:p:664-679 is not listed on IDEAS
    3. repec:kap:jbuset:v:143:y:2017:i:4:d:10.1007_s10551-016-3131-9 is not listed on IDEAS
    4. Calabrese, Linda & Balchin, Neil & Mendez-Parra, Maximiliano, 2017. "The phase-out of second-hand clothing imports: what impact for Tanzania?," MPRA Paper 82175, University Library of Munich, Germany.
    5. Witold Czubala & Ben Shepherd & John S. Wilson, 2009. "Help or Hindrance? The Impact of Harmonised Standards on African Exports †," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 18(5), pages 711-744, November.
    6. Cornelia Staritz, 2011. "Making the Cut? Low-Income Countries and the Global Clothing Value Chain in a Post-Quota and Post-Crisis World," World Bank Publications, The World Bank, number 2547.
    7. Gebreeyesus M., 2013. "The End of the Multifibre Arrangement (MFA) and the Heterogeneous Performance of Quota-Constrained Countries," MERIT Working Papers 035, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. Bala Ramasamy & Matthew Yeung, 2008. "Does China have a competitive advantage in the low-end garment industry? A case study approach," STUDIES IN TRADE AND INVESTMENT,in: Unveiling Protectionism: Regional Responses to Remaining Barriers in the Textiles and Clothing Trade United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    9. Brenton, Paul & Newfarmer, Richard & Walkenhorst, Peter, 2009. "Avenues for Export Diversification: Issues for Low-Income Countries," MPRA Paper 22758, University Library of Munich, Germany.
    10. Brenton, Paul & Hoppe, Mombert & Newfarmer, Richard, 2008. "Economic partnership agreements and the export competitiveness of Africa," Policy Research Working Paper Series 4627, The World Bank.
    11. Ozsoz, Emre, 2014. "Exploitation or Empowerment? The Impact of Textile and Apparel Manufacturing on the Education of Women in Developing Countries," MPRA Paper 58125, University Library of Munich, Germany.

    More about this item

    Keywords

    Economic Theory&Research; Free Trade; Trade Policy; Emerging Markets; Transport Economics Policy&Planning;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:4343. 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: (Roula I. Yazigi). General contact details of provider: http://edirc.repec.org/data/dvewbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.