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The global apparel value chain, trade and the crisis : challenges and opportunities for developing countries

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  • Gereffi, Gary
  • Frederick, Stacey

Abstract

This paper examines the impact of two crises on the global apparel value chain: the World Trade Organization phase-out of the quota system for textiles and apparel in 2005, which provided access for many poor and small export-oriented economies to the markets of industrialized countries, and the current economic recession that has lowered demand for apparel exports and led to massive unemployment across the industry’s supply chain. An overarching trend has been the process of global consolidation, whereby leading apparel suppliers (countries and firms alike) have strengthened their positions in the industry. On the country side, China has been the big winner, although Bangladesh, India, and Vietnam have also continued to expand their roles in the industry. On the firm side, the quota phase-out and economic recession have accelerated the ongoing shift to more streamlined global supply chains, in which lead firms desire to work with fewer, larger, and more capable suppliers that are strategically located around the world. The paper concludes with recommendations for how developing countries as well as textile and apparel suppliers can adjust to the crisis.

Suggested Citation

  • Gereffi, Gary & Frederick, Stacey, 2010. "The global apparel value chain, trade and the crisis : challenges and opportunities for developing countries," Policy Research Working Paper Series 5281, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5281
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    References listed on IDEAS

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    2. Alfred Broaddus, 1985. "Financial innovation in the United States - background, current status and prospects," Economic Review, Federal Reserve Bank of Richmond, issue Jan, pages 2-22.
    3. Goodhart, Charles, 1989. "The Conduct of Monetary Policy," Economic Journal, Royal Economic Society, vol. 99(396), pages 293-346, June.
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    Cited by:

    1. repec:idb:idbbks:6668 is not listed on IDEAS
    2. 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.
    3. Valentina De Marchi & Eleonora Di Maria, 2015. "Eco-innovazione, relazioni di fornitura e implicazioni per la comunicazione nelle piccole imprese: un focus sulla moda italiana," MERCATI E COMPETITIVITÀ, FrancoAngeli Editore, vol. 2015(4), pages 87-104.
    4. Suparna Karmakar & Meenu Tewari, 2014. "Using IPRs to Protect Niches? Evidence from the Indian Textile and Apparel Industry," Working Papers id:5688, eSocialSciences.
    5. Morris, Mike & Staritz, Cornelia, 2014. "Industrialization Trajectories in Madagascar’s Export Apparel Industry: Ownership, Embeddedness, Markets, and Upgrading," World Development, Elsevier, vol. 56(C), pages 243-257.
    6. Plank, Leonhard & Rossi, Arianna & Staritz, Cornelia, 2012. "Workers and social upgrading in "fast fashion": The case of the apparel industry in Morocco and Romania," Working Papers 33, Österreichische Forschungsstiftung für Internationale Entwicklung (ÖFSE) / Austrian Foundation for Development Research.
    7. repec:eee:wdevel:v:96:y:2017:i:c:p:562-577 is not listed on IDEAS
    8. Juan S. Blyde & Christian Volpe Martincus & Danielken Molina, 2014. "Fábricas sincronizadas: América Latina y el Caribe en la era de las Cadenas Globales de Valor," IDB Publications (Books), Inter-American Development Bank, number 86755 edited by Juan S. Blyde, February.
    9. Azmeh, Shamel & Nadvi, Khalid, 2013. "‘Greater Chinese’ global production networks in the Middle East: the rise of the Jordanian garment industry," LSE Research Online Documents on Economics 56409, London School of Economics and Political Science, LSE Library.

    More about this item

    Keywords

    Markets and Market Access; Economic Theory&Research; Free Trade; Labor Policies; Access to Markets;

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