Making the Cut? Low-Income Countries and the Global Clothing Value Chain in a Post-Quota and Post-Crisis World

The clothing sector has traditionally been a gateway to export diversification and industrial development for low-income countries (LICs) but recent developments may condition this role. In most developed and middle-income countries, the clothing s...

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Bibliographic Details
Main Author: Staritz, Cornelia
Format: Publication
Language:English
Published: World Bank 2012
Subjects:
ITC
TAX
WTO
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000334955_20110107051736
http://hdl.handle.net/10986/2547
id okr-10986-2547
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCOUNTING
ACRYLIC
APPAREL
APPAREL INDUSTRY
APPAREL PRODUCT
APPLIED TARIFF
AVERAGE PRICE
AVERAGE TARIFFS
BENEFICIARIES
BENEFICIARY
BILATERAL TRADE
BONDED WAREHOUSE
BONDED WAREHOUSES
CAPACITY BUILDING
CASH FLOWS
CLOTHING
CLOTHING EXPORTS
CLOTHING INDUSTRY
CLOTHING PRODUCTS
COMPETITIVE ADVANTAGE
COMPETITIVE PRICE
COMPETITIVENESS
CONSUMER GOODS
CONSUMERS
COTTON
CREDIT LINE
CREDIT LINES
DEFICITS
DEVELOPING COUNTRIES
DOMESTIC INDUSTRIES
DOMESTIC MARKETS
DOMESTIC PRODUCERS
DOMESTIC PRODUCTION
DYEING
ECONOMIC COOPERATION
ECONOMIC CRISIS
ECONOMIES OF SCALE
EMERGING MARKETS
ENTRY BARRIERS
EQUIPMENT
EXCHANGE RATE
EXCHANGE RATES
EXPORT COMPETITIVENESS
EXPORT DIVERSIFICATION
EXPORT GROWTH
EXPORT MARKETS
EXPORT PROCESSING
EXPORT PROCESSING ZONE
EXPORT SECTORS
EXPORT SHARE
EXPORT SHARES
EXPORT VALUE
EXPORTER
EXPORTERS
FABRICS
FIBRE
FINANCIAL CRISIS
FINANCIAL SUPPORT
FINISHING INDUSTRY
FIXED COSTS
FOOTWEAR
FOREIGN DIRECT INVESTMENT
FOREIGN INVESTMENT
FOREIGN INVESTMENTS
FOREIGN INVESTORS
FOREIGN OWNERSHIP
FREE ACCESS
FREE TRADE
FREE TRADE AREA
GENERALIZED SYSTEM OF PREFERENCES
GLOBAL ECONOMY
GLOBAL MARKETS
GLOBALIZATION
GOVERNMENT POLICIES
GOVERNMENT SUPPORT
GROSS MARGIN
GROWTH RATE
HIGH TARIFFS
HUMAN RESOURCES
IMPORT DUTIES
IMPORT MARKETS
IMPORT PENETRATION
IMPORTS OF TEXTILES
INCOME
INDUSTRIALIZATION
INSURANCE
INTERNATIONAL BANK
INTERNATIONAL FINANCE
INTERNATIONAL TRADE
INVENTORY
INVESTMENT REQUIREMENTS
ITC
LDCS
LENDER
LENDER OF LAST RESORT
LOCAL BUSINESS
LONG-TERM FINANCE
LONG-TERM LOANS
MARKET ACCESS
MARKET CONCENTRATION
MARKET DIVERSIFICATION
MARKET SEGMENT
MARKET SHARE
MARKET SHARES
MARKET STRUCTURES
MARKETING
MERCHANDISE
MERCHANDISE EXPORTS
MERCHANDISING
NATURAL FIBERS
NYLON
POLYESTER
PREFERENTIAL ACCESS
PREFERENTIAL MARKET ACCESS
PREFERENTIAL TARIFF
PREFERENTIAL TRADE
PREFERENTIAL TRADE AGREEMENTS
PRICE LEVEL
QUANTITATIVE RESTRICTIONS
QUOTAS
RAW MATERIAL
RAW MATERIALS
REGIONAL INTEGRATION
REGIONAL TRADE
REGIONAL TRADE AGREEMENTS
REGULATORY SYSTEM
RETAIL
RETURN
RISK AVERSE
RULES OF ORIGIN
SALES
SEWING
SPECIALIZATION
SPINNING
SPREAD
SUPPLIER
SUPPLIERS
SUPPLY CHAIN
SUPPLY CHAIN MANAGEMENT
SUPPLY CHAINS
SUPPLY OF CREDIT
SYNTHETIC FIBERS
TARIFF BARRIERS
TARIFF PREFERENCES
TARIFF RATE
TARIFF RATES
TARIFF SCHEDULE
TAX
TEXTILE
TEXTILE IMPORTS
TEXTILE INDUSTRIES
TEXTILE MILLS
TEXTILE PRODUCTS
TRADE AGREEMENT
TRADE BARRIERS
TRADE DATA
TRADE FACILITATION
TRADE FINANCE
TRADE PATTERNS
TRADE RESTRICTIONS
TRADE UNION
TRADING
TRUST FUND
VALUE ADDED
WAGES
WAREHOUSE
WAREHOUSES
WASTE
WOOL
WORKING CAPITAL
WORLD TRADE
WORLD TRADE ORGANIZATION
WTO
YARN
YARNS
ZERO TARIFFS
spellingShingle ACCOUNTING
ACRYLIC
APPAREL
APPAREL INDUSTRY
APPAREL PRODUCT
APPLIED TARIFF
AVERAGE PRICE
AVERAGE TARIFFS
BENEFICIARIES
BENEFICIARY
BILATERAL TRADE
BONDED WAREHOUSE
BONDED WAREHOUSES
CAPACITY BUILDING
CASH FLOWS
CLOTHING
CLOTHING EXPORTS
CLOTHING INDUSTRY
CLOTHING PRODUCTS
COMPETITIVE ADVANTAGE
COMPETITIVE PRICE
COMPETITIVENESS
CONSUMER GOODS
CONSUMERS
COTTON
CREDIT LINE
CREDIT LINES
DEFICITS
DEVELOPING COUNTRIES
DOMESTIC INDUSTRIES
DOMESTIC MARKETS
DOMESTIC PRODUCERS
DOMESTIC PRODUCTION
DYEING
ECONOMIC COOPERATION
ECONOMIC CRISIS
ECONOMIES OF SCALE
EMERGING MARKETS
ENTRY BARRIERS
EQUIPMENT
EXCHANGE RATE
EXCHANGE RATES
EXPORT COMPETITIVENESS
EXPORT DIVERSIFICATION
EXPORT GROWTH
EXPORT MARKETS
EXPORT PROCESSING
EXPORT PROCESSING ZONE
EXPORT SECTORS
EXPORT SHARE
EXPORT SHARES
EXPORT VALUE
EXPORTER
EXPORTERS
FABRICS
FIBRE
FINANCIAL CRISIS
FINANCIAL SUPPORT
FINISHING INDUSTRY
FIXED COSTS
FOOTWEAR
FOREIGN DIRECT INVESTMENT
FOREIGN INVESTMENT
FOREIGN INVESTMENTS
FOREIGN INVESTORS
FOREIGN OWNERSHIP
FREE ACCESS
FREE TRADE
FREE TRADE AREA
GENERALIZED SYSTEM OF PREFERENCES
GLOBAL ECONOMY
GLOBAL MARKETS
GLOBALIZATION
GOVERNMENT POLICIES
GOVERNMENT SUPPORT
GROSS MARGIN
GROWTH RATE
HIGH TARIFFS
HUMAN RESOURCES
IMPORT DUTIES
IMPORT MARKETS
IMPORT PENETRATION
IMPORTS OF TEXTILES
INCOME
INDUSTRIALIZATION
INSURANCE
INTERNATIONAL BANK
INTERNATIONAL FINANCE
INTERNATIONAL TRADE
INVENTORY
INVESTMENT REQUIREMENTS
ITC
LDCS
LENDER
LENDER OF LAST RESORT
LOCAL BUSINESS
LONG-TERM FINANCE
LONG-TERM LOANS
MARKET ACCESS
MARKET CONCENTRATION
MARKET DIVERSIFICATION
MARKET SEGMENT
MARKET SHARE
MARKET SHARES
MARKET STRUCTURES
MARKETING
MERCHANDISE
MERCHANDISE EXPORTS
MERCHANDISING
NATURAL FIBERS
NYLON
POLYESTER
PREFERENTIAL ACCESS
PREFERENTIAL MARKET ACCESS
PREFERENTIAL TARIFF
PREFERENTIAL TRADE
PREFERENTIAL TRADE AGREEMENTS
PRICE LEVEL
QUANTITATIVE RESTRICTIONS
QUOTAS
RAW MATERIAL
RAW MATERIALS
REGIONAL INTEGRATION
REGIONAL TRADE
REGIONAL TRADE AGREEMENTS
REGULATORY SYSTEM
RETAIL
RETURN
RISK AVERSE
RULES OF ORIGIN
SALES
SEWING
SPECIALIZATION
SPINNING
SPREAD
SUPPLIER
SUPPLIERS
SUPPLY CHAIN
SUPPLY CHAIN MANAGEMENT
SUPPLY CHAINS
SUPPLY OF CREDIT
SYNTHETIC FIBERS
TARIFF BARRIERS
TARIFF PREFERENCES
TARIFF RATE
TARIFF RATES
TARIFF SCHEDULE
TAX
TEXTILE
TEXTILE IMPORTS
TEXTILE INDUSTRIES
TEXTILE MILLS
TEXTILE PRODUCTS
TRADE AGREEMENT
TRADE BARRIERS
TRADE DATA
TRADE FACILITATION
TRADE FINANCE
TRADE PATTERNS
TRADE RESTRICTIONS
TRADE UNION
TRADING
TRUST FUND
VALUE ADDED
WAGES
WAREHOUSE
WAREHOUSES
WASTE
WOOL
WORKING CAPITAL
WORLD TRADE
WORLD TRADE ORGANIZATION
WTO
YARN
YARNS
ZERO TARIFFS
Staritz, Cornelia
Making the Cut? Low-Income Countries and the Global Clothing Value Chain in a Post-Quota and Post-Crisis World
relation World Bank Study
description The clothing sector has traditionally been a gateway to export diversification and industrial development for low-income countries (LICs) but recent developments may condition this role. In most developed and middle-income countries, the clothing sector was central in the industrialization process. Recently, however, the environment for global clothing trade has changed significantly, driven by the rise of organizational buyers and their global sourcing strategies, the phase-out of the Multi-Fibre Arrangement (MFA) at the end of 2004, and the global economic crisis in 2008-09. Changes in global supply and demand structures have increased competition between LIC exporters but also offer new opportunities in fast-growing emerging markets. The second half of the twentieth century was characterized by a rising demand for clothing and the replacement of developed countries' domestic production by imports from developing countries. Today, however, demand has stagnated and import penetration levels are close to 100 percent in most developed countries. Thus, the growth of clothing exports from a few developing countries largely comes at the expense of clothing producers in other developing countries. The heightened competition between developing countries has been reinforced by overcapacity in the global clothing industry since the MFA phase-out and has been accelerated by the global economic crisis. However, changes in demand structures post-crisis may lead to new opportunities. While import demand for clothing in the Unites States, the European Union (EU), and Japan might stagnate, demand will increase in fast-growing emerging markets.
format Publications & Research :: Publication
author Staritz, Cornelia
author_facet Staritz, Cornelia
author_sort Staritz, Cornelia
title Making the Cut? Low-Income Countries and the Global Clothing Value Chain in a Post-Quota and Post-Crisis World
title_short Making the Cut? Low-Income Countries and the Global Clothing Value Chain in a Post-Quota and Post-Crisis World
title_full Making the Cut? Low-Income Countries and the Global Clothing Value Chain in a Post-Quota and Post-Crisis World
title_fullStr Making the Cut? Low-Income Countries and the Global Clothing Value Chain in a Post-Quota and Post-Crisis World
title_full_unstemmed Making the Cut? Low-Income Countries and the Global Clothing Value Chain in a Post-Quota and Post-Crisis World
title_sort making the cut? low-income countries and the global clothing value chain in a post-quota and post-crisis world
publisher World Bank
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000334955_20110107051736
http://hdl.handle.net/10986/2547
_version_ 1764385625927057408
spelling okr-10986-25472021-04-23T14:02:02Z Making the Cut? Low-Income Countries and the Global Clothing Value Chain in a Post-Quota and Post-Crisis World Staritz, Cornelia ACCOUNTING ACRYLIC APPAREL APPAREL INDUSTRY APPAREL PRODUCT APPLIED TARIFF AVERAGE PRICE AVERAGE TARIFFS BENEFICIARIES BENEFICIARY BILATERAL TRADE BONDED WAREHOUSE BONDED WAREHOUSES CAPACITY BUILDING CASH FLOWS CLOTHING CLOTHING EXPORTS CLOTHING INDUSTRY CLOTHING PRODUCTS COMPETITIVE ADVANTAGE COMPETITIVE PRICE COMPETITIVENESS CONSUMER GOODS CONSUMERS COTTON CREDIT LINE CREDIT LINES DEFICITS DEVELOPING COUNTRIES DOMESTIC INDUSTRIES DOMESTIC MARKETS DOMESTIC PRODUCERS DOMESTIC PRODUCTION DYEING ECONOMIC COOPERATION ECONOMIC CRISIS ECONOMIES OF SCALE EMERGING MARKETS ENTRY BARRIERS EQUIPMENT EXCHANGE RATE EXCHANGE RATES EXPORT COMPETITIVENESS EXPORT DIVERSIFICATION EXPORT GROWTH EXPORT MARKETS EXPORT PROCESSING EXPORT PROCESSING ZONE EXPORT SECTORS EXPORT SHARE EXPORT SHARES EXPORT VALUE EXPORTER EXPORTERS FABRICS FIBRE FINANCIAL CRISIS FINANCIAL SUPPORT FINISHING INDUSTRY FIXED COSTS FOOTWEAR FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FOREIGN INVESTMENTS FOREIGN INVESTORS FOREIGN OWNERSHIP FREE ACCESS FREE TRADE FREE TRADE AREA GENERALIZED SYSTEM OF PREFERENCES GLOBAL ECONOMY GLOBAL MARKETS GLOBALIZATION GOVERNMENT POLICIES GOVERNMENT SUPPORT GROSS MARGIN GROWTH RATE HIGH TARIFFS HUMAN RESOURCES IMPORT DUTIES IMPORT MARKETS IMPORT PENETRATION IMPORTS OF TEXTILES INCOME INDUSTRIALIZATION INSURANCE INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL TRADE INVENTORY INVESTMENT REQUIREMENTS ITC LDCS LENDER LENDER OF LAST RESORT LOCAL BUSINESS LONG-TERM FINANCE LONG-TERM LOANS MARKET ACCESS MARKET CONCENTRATION MARKET DIVERSIFICATION MARKET SEGMENT MARKET SHARE MARKET SHARES MARKET STRUCTURES MARKETING MERCHANDISE MERCHANDISE EXPORTS MERCHANDISING NATURAL FIBERS NYLON POLYESTER PREFERENTIAL ACCESS PREFERENTIAL MARKET ACCESS PREFERENTIAL TARIFF PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS PRICE LEVEL QUANTITATIVE RESTRICTIONS QUOTAS RAW MATERIAL RAW MATERIALS REGIONAL INTEGRATION REGIONAL TRADE REGIONAL TRADE AGREEMENTS REGULATORY SYSTEM RETAIL RETURN RISK AVERSE RULES OF ORIGIN SALES SEWING SPECIALIZATION SPINNING SPREAD SUPPLIER SUPPLIERS SUPPLY CHAIN SUPPLY CHAIN MANAGEMENT SUPPLY CHAINS SUPPLY OF CREDIT SYNTHETIC FIBERS TARIFF BARRIERS TARIFF PREFERENCES TARIFF RATE TARIFF RATES TARIFF SCHEDULE TAX TEXTILE TEXTILE IMPORTS TEXTILE INDUSTRIES TEXTILE MILLS TEXTILE PRODUCTS TRADE AGREEMENT TRADE BARRIERS TRADE DATA TRADE FACILITATION TRADE FINANCE TRADE PATTERNS TRADE RESTRICTIONS TRADE UNION TRADING TRUST FUND VALUE ADDED WAGES WAREHOUSE WAREHOUSES WASTE WOOL WORKING CAPITAL WORLD TRADE WORLD TRADE ORGANIZATION WTO YARN YARNS ZERO TARIFFS The clothing sector has traditionally been a gateway to export diversification and industrial development for low-income countries (LICs) but recent developments may condition this role. In most developed and middle-income countries, the clothing sector was central in the industrialization process. Recently, however, the environment for global clothing trade has changed significantly, driven by the rise of organizational buyers and their global sourcing strategies, the phase-out of the Multi-Fibre Arrangement (MFA) at the end of 2004, and the global economic crisis in 2008-09. Changes in global supply and demand structures have increased competition between LIC exporters but also offer new opportunities in fast-growing emerging markets. The second half of the twentieth century was characterized by a rising demand for clothing and the replacement of developed countries' domestic production by imports from developing countries. Today, however, demand has stagnated and import penetration levels are close to 100 percent in most developed countries. Thus, the growth of clothing exports from a few developing countries largely comes at the expense of clothing producers in other developing countries. The heightened competition between developing countries has been reinforced by overcapacity in the global clothing industry since the MFA phase-out and has been accelerated by the global economic crisis. However, changes in demand structures post-crisis may lead to new opportunities. While import demand for clothing in the Unites States, the European Union (EU), and Japan might stagnate, demand will increase in fast-growing emerging markets. 2012-03-19T09:36:10Z 2012-03-19T09:36:10Z 2011 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000334955_20110107051736 978-0-8213-8636-1 http://hdl.handle.net/10986/2547 English World Bank Study CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank Publications & Research :: Publication Publications & Research :: Publication