Sneaking up and stumbling back: Textiles sector performance under crisis conditions in Zimbabwe

Blessing Chiripanhura ()

Journal of International Development, 2010, vol. 22, issue 2, 153-175

Abstract: The paper examines the structure and performance of the textiles and clothing sectors in Zimbabwe. Based on firm level data, it examines the challenges and factors behind the resilience of the two sectors. It shows that increased flexibility, reduced capacity utilisation, modernisation of production systems and production incentives were among the most important factors exploited by firms to remain in business. It shows the main hindrance as macroeconomic instability that caused raw materials and skills shortages. It concludes that the sectors still have comparative advantage that can be exploited in a stable economy. The challenge is that the longer the current crisis goes unresolved, the more likely it is that the sectors will lose all the potential comparative advantage, implying that firms that have survived the crisis since 1997 may eventually be forced to shut down. Copyright © 2008 John Wiley & Sons, Ltd.

Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jintdv:v:22:y:2010:i:2:p:153-175

DOI: 10.1002/jid.1535

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