Clothing and Export Diversification : Still a Route to Growth for Low-Income Countries?
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 change...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2007/09/8267332/clothing-export-diversification-still-route-growth-low-income-countries http://hdl.handle.net/10986/7334 |
| Summary: | 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. |
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