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...

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Bibliographic Details
Main Authors: Brenton, Paul, Hoppe, Mombert
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
EPZ
GDP
TAX
WTO
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
id okr-10986-7334
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 ABSORPTIVE CAPACITY
AGGREGATE EXPORTS
AGRICULTURAL PRODUCTS
APPAREL
APPAREL EXPORTS
APPAREL GOODS
APPAREL MARKET
APPAREL PRODUCERS
APPAREL PRODUCTS
APPAREL TRADE
AVERAGE TARIFF
AVERAGE TARIFFS
BARRIERS TO ENTRY
BILATERAL IMPORTS
BILATERAL TRADE
BORDER CROSSING
BUSINESS CLIMATE
BUSINESS CLIMATES
BUSINESS ENVIRONMENT
CAPITAL ACCUMULATION
CENTRAL AMERICA
COMMODITY
COMPARATIVE ADVANTAGE
COMPARATIVE ADVANTAGES
COMPETITIVE POSITION
COMPETITIVENESS
CONSUMER DEMAND
CORPORATE RESPONSIBILITY
COST OF TRANSPORT
COUNTRY MARKETS
CUSTOMS
CUSTOMS CLEARANCE
CUSTOMS PROCEDURES
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DOMESTIC ECONOMY
DOMESTIC MARKET
DOMESTIC PRODUCTION
DOMESTIC TRADE
DRIVERS
ECONOMIC DEVELOPMENT
ECONOMIC RISK
ECONOMIC SIZE
ELASTICITY
ELASTICITY OF TRADE
EPZ
EXCHANGE RATES
EXPORT DIVERSIFICATION
EXPORT GROWTH
EXPORT LICENCES
EXPORT PERFORMANCE
EXPORT PROCEDURES
EXPORT PROCESSING
EXPORT PROCESSING ZONES
EXPORT SHARE
EXPORTERS
EXPORTS
FEDERAL RESERVE
FINAL GOODS
FOREIGN MARKETS
FUEL
GDP
GDP PER CAPITA
GLOBAL COMPETITIVENESS
GLOBAL ECONOMIC PROSPECTS
GLOBAL ECONOMY
GLOBAL EXPORTS
GLOBAL MARKET
GLOBAL MARKETS
GLOBAL TRADE
GLOBAL TRADING
GOOD GOVERNANCE
GOVERNANCE INDICATOR
GOVERNANCE INDICATORS
GOVERNMENT ACTION
GRAVITY APPROACH
GRAVITY EQUATION
GRAVITY MODEL
GRAVITY MODEL APPROACH
GRAVITY VARIABLES
GROWTH RATES
HIGH TARIFFS
HIGH TRANSPORT
HUMAN CAPITAL
IMPERFECT COMPETITION
IMPORT DUTIES
IMPORT PENETRATION
IMPORT PROTECTION
IMPORT TARIFFS
IMPORT VALUE
INCOME
INCOMES
INDUSTRIAL COUNTRIES
INDUSTRIALIZATION
INSURANCE
INTERMEDIATE INPUTS
INTERNATIONAL ECONOMICS
INTERNATIONAL FINANCE
INTERNATIONAL INVESTORS
INTERNATIONAL MARKETS
INTERNATIONAL TRADE
INVENTORY
INVESTMENT CLIMATE
LABOR MARKETS
LDCS
LOW-INCOME COUNTRIES
MARKET PENETRATION
MULTILATERAL TRADE
MULTILATERAL TRADE LIBERALIZATION
NATURAL RESOURCE
OUTPUT
PACIFIC REGION
PER CAPITA INCOME
POSITIVE EFFECTS
PREFERENTIAL ACCESS
PREFERENTIAL TRADE
PREFERENTIAL TRADE AGREEMENTS
PRICE COMPETITION
PRODUCTION COSTS
PROTECTIONIST
QUALITY OF TRANSPORT
QUOTAS
REGIONAL TRADE
REGIONAL TRADE AGREEMENTS
REPUTATION
RESTRICTIVE RULES OF ORIGIN
ROAD
ROUTE
ROUTES
RULES OF ORIGIN
SMALL COUNTRIES
SOURCING
SPECIALIZATION
SUB-SAHARAN AFRICA
TARIFF BARRIERS
TARIFF PROTECTION
TARIFF RATES
TAX
TELECOMMUNICATIONS
TELEPHONE SERVICES
TRADE AGREEMENTS
TRADE BARRIER
TRADE BARRIERS
TRADE COSTS
TRADE DATA
TRADE FACILITATION
TRADE FINANCE
TRADE FLOWS
TRADE LIBERALIZATION
TRADE PATTERNS
TRADE POLICY
TRADE PREFERENCES
TRADE REGIME
TRADE RELATIONSHIPS
TRADE RESTRICTIONS
TRADE STRATEGY
TRADING VOLUMES
TRAINS
TRANSACTION COSTS
TRANSIT
TRANSIT SYSTEMS
TRANSPORT
TRANSPORT COSTS
TRANSPORT INFRASTRUCTURES
TRANSPORT SERVICES
TRANSPORTATION
TRUE
UNSKILLED LABOR
VALUE ADDED
VALUE OF EXPORTS
VOLUME OF TRADE
WAGE RATES
WAGES
WEALTH
WORLD DEVELOPMENT INDICATORS
WORLD ECONOMY
WORLD MARKET
WORLD MARKETS
WORLD PRICES
WORLD TRADE
WTO
spellingShingle ABSORPTIVE CAPACITY
AGGREGATE EXPORTS
AGRICULTURAL PRODUCTS
APPAREL
APPAREL EXPORTS
APPAREL GOODS
APPAREL MARKET
APPAREL PRODUCERS
APPAREL PRODUCTS
APPAREL TRADE
AVERAGE TARIFF
AVERAGE TARIFFS
BARRIERS TO ENTRY
BILATERAL IMPORTS
BILATERAL TRADE
BORDER CROSSING
BUSINESS CLIMATE
BUSINESS CLIMATES
BUSINESS ENVIRONMENT
CAPITAL ACCUMULATION
CENTRAL AMERICA
COMMODITY
COMPARATIVE ADVANTAGE
COMPARATIVE ADVANTAGES
COMPETITIVE POSITION
COMPETITIVENESS
CONSUMER DEMAND
CORPORATE RESPONSIBILITY
COST OF TRANSPORT
COUNTRY MARKETS
CUSTOMS
CUSTOMS CLEARANCE
CUSTOMS PROCEDURES
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DOMESTIC ECONOMY
DOMESTIC MARKET
DOMESTIC PRODUCTION
DOMESTIC TRADE
DRIVERS
ECONOMIC DEVELOPMENT
ECONOMIC RISK
ECONOMIC SIZE
ELASTICITY
ELASTICITY OF TRADE
EPZ
EXCHANGE RATES
EXPORT DIVERSIFICATION
EXPORT GROWTH
EXPORT LICENCES
EXPORT PERFORMANCE
EXPORT PROCEDURES
EXPORT PROCESSING
EXPORT PROCESSING ZONES
EXPORT SHARE
EXPORTERS
EXPORTS
FEDERAL RESERVE
FINAL GOODS
FOREIGN MARKETS
FUEL
GDP
GDP PER CAPITA
GLOBAL COMPETITIVENESS
GLOBAL ECONOMIC PROSPECTS
GLOBAL ECONOMY
GLOBAL EXPORTS
GLOBAL MARKET
GLOBAL MARKETS
GLOBAL TRADE
GLOBAL TRADING
GOOD GOVERNANCE
GOVERNANCE INDICATOR
GOVERNANCE INDICATORS
GOVERNMENT ACTION
GRAVITY APPROACH
GRAVITY EQUATION
GRAVITY MODEL
GRAVITY MODEL APPROACH
GRAVITY VARIABLES
GROWTH RATES
HIGH TARIFFS
HIGH TRANSPORT
HUMAN CAPITAL
IMPERFECT COMPETITION
IMPORT DUTIES
IMPORT PENETRATION
IMPORT PROTECTION
IMPORT TARIFFS
IMPORT VALUE
INCOME
INCOMES
INDUSTRIAL COUNTRIES
INDUSTRIALIZATION
INSURANCE
INTERMEDIATE INPUTS
INTERNATIONAL ECONOMICS
INTERNATIONAL FINANCE
INTERNATIONAL INVESTORS
INTERNATIONAL MARKETS
INTERNATIONAL TRADE
INVENTORY
INVESTMENT CLIMATE
LABOR MARKETS
LDCS
LOW-INCOME COUNTRIES
MARKET PENETRATION
MULTILATERAL TRADE
MULTILATERAL TRADE LIBERALIZATION
NATURAL RESOURCE
OUTPUT
PACIFIC REGION
PER CAPITA INCOME
POSITIVE EFFECTS
PREFERENTIAL ACCESS
PREFERENTIAL TRADE
PREFERENTIAL TRADE AGREEMENTS
PRICE COMPETITION
PRODUCTION COSTS
PROTECTIONIST
QUALITY OF TRANSPORT
QUOTAS
REGIONAL TRADE
REGIONAL TRADE AGREEMENTS
REPUTATION
RESTRICTIVE RULES OF ORIGIN
ROAD
ROUTE
ROUTES
RULES OF ORIGIN
SMALL COUNTRIES
SOURCING
SPECIALIZATION
SUB-SAHARAN AFRICA
TARIFF BARRIERS
TARIFF PROTECTION
TARIFF RATES
TAX
TELECOMMUNICATIONS
TELEPHONE SERVICES
TRADE AGREEMENTS
TRADE BARRIER
TRADE BARRIERS
TRADE COSTS
TRADE DATA
TRADE FACILITATION
TRADE FINANCE
TRADE FLOWS
TRADE LIBERALIZATION
TRADE PATTERNS
TRADE POLICY
TRADE PREFERENCES
TRADE REGIME
TRADE RELATIONSHIPS
TRADE RESTRICTIONS
TRADE STRATEGY
TRADING VOLUMES
TRAINS
TRANSACTION COSTS
TRANSIT
TRANSIT SYSTEMS
TRANSPORT
TRANSPORT COSTS
TRANSPORT INFRASTRUCTURES
TRANSPORT SERVICES
TRANSPORTATION
TRUE
UNSKILLED LABOR
VALUE ADDED
VALUE OF EXPORTS
VOLUME OF TRADE
WAGE RATES
WAGES
WEALTH
WORLD DEVELOPMENT INDICATORS
WORLD ECONOMY
WORLD MARKET
WORLD MARKETS
WORLD PRICES
WORLD TRADE
WTO
Brenton, Paul
Hoppe, Mombert
Clothing and Export Diversification : Still a Route to Growth for Low-Income Countries?
relation Policy Research Working Paper; No. 4343
description 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.
format Publications & Research :: Policy Research Working Paper
author Brenton, Paul
Hoppe, Mombert
author_facet Brenton, Paul
Hoppe, Mombert
author_sort Brenton, Paul
title Clothing and Export Diversification : Still a Route to Growth for Low-Income Countries?
title_short Clothing and Export Diversification : Still a Route to Growth for Low-Income Countries?
title_full Clothing and Export Diversification : Still a Route to Growth for Low-Income Countries?
title_fullStr Clothing and Export Diversification : Still a Route to Growth for Low-Income Countries?
title_full_unstemmed Clothing and Export Diversification : Still a Route to Growth for Low-Income Countries?
title_sort clothing and export diversification : still a route to growth for low-income countries?
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2007/09/8267332/clothing-export-diversification-still-route-growth-low-income-countries
http://hdl.handle.net/10986/7334
_version_ 1764402348548947968
spelling okr-10986-73342021-04-23T14:02:34Z Clothing and Export Diversification : Still a Route to Growth for Low-Income Countries? Brenton, Paul Hoppe, Mombert ABSORPTIVE CAPACITY AGGREGATE EXPORTS AGRICULTURAL PRODUCTS APPAREL APPAREL EXPORTS APPAREL GOODS APPAREL MARKET APPAREL PRODUCERS APPAREL PRODUCTS APPAREL TRADE AVERAGE TARIFF AVERAGE TARIFFS BARRIERS TO ENTRY BILATERAL IMPORTS BILATERAL TRADE BORDER CROSSING BUSINESS CLIMATE BUSINESS CLIMATES BUSINESS ENVIRONMENT CAPITAL ACCUMULATION CENTRAL AMERICA COMMODITY COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPETITIVE POSITION COMPETITIVENESS CONSUMER DEMAND CORPORATE RESPONSIBILITY COST OF TRANSPORT COUNTRY MARKETS CUSTOMS CUSTOMS CLEARANCE CUSTOMS PROCEDURES DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DOMESTIC ECONOMY DOMESTIC MARKET DOMESTIC PRODUCTION DOMESTIC TRADE DRIVERS ECONOMIC DEVELOPMENT ECONOMIC RISK ECONOMIC SIZE ELASTICITY ELASTICITY OF TRADE EPZ EXCHANGE RATES EXPORT DIVERSIFICATION EXPORT GROWTH EXPORT LICENCES EXPORT PERFORMANCE EXPORT PROCEDURES EXPORT PROCESSING EXPORT PROCESSING ZONES EXPORT SHARE EXPORTERS EXPORTS FEDERAL RESERVE FINAL GOODS FOREIGN MARKETS FUEL GDP GDP PER CAPITA GLOBAL COMPETITIVENESS GLOBAL ECONOMIC PROSPECTS GLOBAL ECONOMY GLOBAL EXPORTS GLOBAL MARKET GLOBAL MARKETS GLOBAL TRADE GLOBAL TRADING GOOD GOVERNANCE GOVERNANCE INDICATOR GOVERNANCE INDICATORS GOVERNMENT ACTION GRAVITY APPROACH GRAVITY EQUATION GRAVITY MODEL GRAVITY MODEL APPROACH GRAVITY VARIABLES GROWTH RATES HIGH TARIFFS HIGH TRANSPORT HUMAN CAPITAL IMPERFECT COMPETITION IMPORT DUTIES IMPORT PENETRATION IMPORT PROTECTION IMPORT TARIFFS IMPORT VALUE INCOME INCOMES INDUSTRIAL COUNTRIES INDUSTRIALIZATION INSURANCE INTERMEDIATE INPUTS INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL INVESTORS INTERNATIONAL MARKETS INTERNATIONAL TRADE INVENTORY INVESTMENT CLIMATE LABOR MARKETS LDCS LOW-INCOME COUNTRIES MARKET PENETRATION MULTILATERAL TRADE MULTILATERAL TRADE LIBERALIZATION NATURAL RESOURCE OUTPUT PACIFIC REGION PER CAPITA INCOME POSITIVE EFFECTS PREFERENTIAL ACCESS PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS PRICE COMPETITION PRODUCTION COSTS PROTECTIONIST QUALITY OF TRANSPORT QUOTAS REGIONAL TRADE REGIONAL TRADE AGREEMENTS REPUTATION RESTRICTIVE RULES OF ORIGIN ROAD ROUTE ROUTES RULES OF ORIGIN SMALL COUNTRIES SOURCING SPECIALIZATION SUB-SAHARAN AFRICA TARIFF BARRIERS TARIFF PROTECTION TARIFF RATES TAX TELECOMMUNICATIONS TELEPHONE SERVICES TRADE AGREEMENTS TRADE BARRIER TRADE BARRIERS TRADE COSTS TRADE DATA TRADE FACILITATION TRADE FINANCE TRADE FLOWS TRADE LIBERALIZATION TRADE PATTERNS TRADE POLICY TRADE PREFERENCES TRADE REGIME TRADE RELATIONSHIPS TRADE RESTRICTIONS TRADE STRATEGY TRADING VOLUMES TRAINS TRANSACTION COSTS TRANSIT TRANSIT SYSTEMS TRANSPORT TRANSPORT COSTS TRANSPORT INFRASTRUCTURES TRANSPORT SERVICES TRANSPORTATION TRUE UNSKILLED LABOR VALUE ADDED VALUE OF EXPORTS VOLUME OF TRADE WAGE RATES WAGES WEALTH WORLD DEVELOPMENT INDICATORS WORLD ECONOMY WORLD MARKET WORLD MARKETS WORLD PRICES WORLD TRADE WTO 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. 2012-06-06T20:31:44Z 2012-06-06T20:31:44Z 2007-09 http://documents.worldbank.org/curated/en/2007/09/8267332/clothing-export-diversification-still-route-growth-low-income-countries http://hdl.handle.net/10986/7334 English Policy Research Working Paper; No. 4343 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research