Summaries of the Country Case Studies on Apparel Industry Development, Structure, and Policies

534 Pages·2012·8.65 MB·English

by  World Bank Group

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Sewing Success?

Sewing Success?
Employment, Wages, and Poverty following
the End of the Multi-fibre Arrangement
Editors
Gladys Lopez-Acevedo
Raymond Robertson
© 2012 International Bank for Reconstruction and Development / International Development
Association or
The World Bank
1818 H Street NW
Washington DC 20433
Telephone: [phone]
Internet: www.worldbank.org
1 2 3 4 15 14 13 12
This volume is a product of the staff of The World Bank with external contributions. The
findings, interpretations, and conclusions expressed in this volume do not necessarily reflect
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ISBN (paper): 978-0-8213-8778-8
ISBN (electronic): 978-0-8213-8973-7
DOI: 10.1596/978-0-8213-8778-8
Cover photo: © Corbis.
Cover design: Naylor Design.
Library of Congress Cataloging-in-Publication Data
Sewing success? : employment, wages and poverty following the end of the multi-fibre
arrangement / editors, Gladys Lopez Acevedo, Raymond Robertson.
p. cm. — (Directions in development)
Includes bibliographical references.
ISBN 978-0-8213-8778-8 (alk. paper) — ISBN 978-0-8213-8973-7
1. Textile industry—Developing countries. 2. Import quotas—Developing countries.
3. Developing countries—Economic conditions. I. Lopez Acevedo, Gladys. II. Robertson,
Raymond, 1969-
HD9868.D44S49 2012
331.7’6770091724—dc23
2011045979
Contents
Acknowledgments xix
About the Authors xxiii
Abbreviations xxvii
Overview 1
PART 1 Employment, Wages, and Poverty after the
End of the MFA 5
Chapter 1 Introduction 7
Apparel as a Key Sector 8
The Importance of the MFA/ATC 10
Choosing the Focus Countries 10
The Link between Apparel and Poverty
(Motivating the Choice of Variables) 12
Structure of the Book 14
Notes 15
References 16
Chapter 2 Theoretical Foundation and Empirical Approach 19
Modeling Global Apparel Production Decisions 19
v
vi Contents
Empirical Strategy 26
Data 34
Notes 38
References 39
Chapter 3 Developments in the Global Apparel Industry
after the MFA Phaseout 41
Introduction 41
Structure of the Apparel Industry 42
Regulatory Context 52
Implications of the MFA Phaseout 56
Overview of Case Study Countries 70
Conclusions 80
Notes 81
References 83
Chapter 4 Success and Upgrading after the End of the MFA 87
Introduction 87
Industry Evolution, Policies, and Post-MFA
Development 89
Empirical Results 100
Final Remarks 118
Annex 119
Notes 124
References and Other Sources 125
Additional Readings 132
Chapter 5 The Challenge to Major Exporters after
the MFA Phaseout 137
Introduction 137
Industry Evolution and Export Performance
following the MFA Phaseout 139
Employment and Intersector Reallocation 145
Intrasector Reallocation 148
Unit Values and Wages 151
Working Conditions 152
Conclusion 155
Annex 157
Notes 158
References 159
Contents vii
Chapter 6 The Rise of Small Asian Economies in the
Apparel Industry 163
Introduction 163
Apparel Sector Structure in Cambodia
and Sri Lanka 165
Employment 176
Within-Industry Changes 179
Wages 184
Working Conditions 187
Conclusions 190
Annex 191
Notes 192
References 194
Chapter 7 Conclusions 197
Apparel and Poverty 197
Changes following the End of the MFA:
Overview of Country-Level Results 198
Main Findings and Policy Implications 199
Directions for Future Work 203
Annex 206
Note 208
References 208
PART 2 Summaries of the Country Case Studies on
Apparel Industry Development, Structure,
and Policies 211
Chapter 8 Bangladesh 213
Overview 213
Development of the Apparel Industry 214
Structure of the Apparel Industry 221
Trade Regulations and Proactive Policies 237
Notes 242
References 243
Chapter 9 Cambodia 247
Overview 247
Development of the Apparel Industry 248
Structure of the Apparel Industry 255
Trade Regulations and Proactive Policies 267
viii Contents
Notes 270
References 271
Chapter 10 Honduras 273
Overview 273
Development of the Apparel Industry 274
Overview of DR-CAFTA Countries 282
Structure of the Apparel Industry 284
Trade Regulations and Proactive Policies 299
Notes 303
References 304
Chapter 11 India 307
Overview 307
Development of the Apparel Industry 309
Structure of the Apparel Industry 317
Trade Regulations and Proactive Policies 342
Proactive Policies 344
Notes 348
References 349
Chapter 12 Mexico 353
Overview 353
Development of the Apparel Industry 354
Structure of the Apparel Industry 360
Trade Regulations and Proactive Policies 374
Notes 378
References 378
Chapter 13 Morocco 381
Overview 381
Development of the Apparel Industry 382
Overview of MENA-4 Countries 387
Structure of the Apparel Industry 389
Trade Regulations and Proactive Policies 400
Notes 404
References 404
Chapter 14 Pakistan 407
Overview 407
Development of the Apparel Industry 409