Development of the Apparel Industry in Major Apparel Exporters

Abstract

The apparel (garment or clothing) industry is probably the most important globalized industry in many developing economies due to its immense positive impact on economic growth through export revenues. The sector is also viewed as an entry into formal employment for the unskilled, uneducated and the poor workforce, particularly for women, because of its relatively low-technology and high labour-intensive nature. Therefore, the apparel industry is considered essential for the socio-economic development of many developing countries. Considering the increasing importance of the apparel industry, this thesis is undertaken to investigate four inter-connected aspects on the development of the apparel industry that are unexplored in the literature. Part 1 of the thesis deals with the determinants of apparel exports at firm-level during the post Multi-Fibre Arrangements (MFA) period (2005 − 2014). It was widely predicted that the MFA abolition would cause a decline in the apparel exports of some vulnerable developing countries such as Bangladesh, the Philippines, and Vietnam because these countries may not be able to compete with China and India in the post-MFA free-competition markets. However, performance in the post-MFA shows that some developing countries such as Bangladesh and Vietnam managed to sustain growth, while some other countries such as the Philippines and Mexico experienced a decline in apparel exports.