Misfired Promotion of the Export-Oriented Garment Industry in Ethiopia
Tetsushi Sonobe and
Keijiro Otsuka ()
Chapter 9 in Cluster-Based Industrial Development, 2011, pp 195-219 from Palgrave Macmillan
Abstract:
Abstract The US preferential trade policy AGOA (the African Growth and Opportunity Act) was signed into law in 2000. It has provided garment industries in sub-Saharan Africa with duty-free and quota-free access to the US market while allowing the use of third-country fabric as an input. This opportunity is similar to the one given to the Bangladeshi garment industry around 1980 through the export restriction on Korean and other East Asian garment producers under the Multi-Fiber Arrangement (MFA). Following the lead of Daewoo, a number of East Asian garment producers undertook technology transfers to and direct investments in Bangladesh in response to the MFA export restriction. Bangladeshi businessmen and the government of Bangladesh took full advantage of this new opportunity to develop their garment industry into one of the leading garment exporters in the world and the single most important industry in the country, as we saw in the previous chapter. Is this success of Bangladesh being replicated in sub-Saharan Africa (SSA)?
Keywords: Labor Productivity; Garment Industry; Employment Size; High Labor Productivity; Average Education Level (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-29512-4_9
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DOI: 10.1057/9780230295124_9
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