Fiji’s Garment Industry: an Economic Analysis

Abstract

The May 2000 civilian coup has had a detrimental effect on investor confidence in Fiji. Political instability and uncertainty surrounds the economy and the garment industry – one of the successful products of the Export Oriented Industrialization strategy – is the most affected. Investment in this sector has stalled and a total of 7 garment factories have closed operations with the likelihood of others following the same direction if the political impasse and uncertainty continues. In light of the continuing demise of the industry, this paper enlightens the contribution of the industry to Fiji’s economy in terms of exports and employment creation. The paper also presents an analysis of the profitability and operating efficiency status of the industry and contends that the industry is a viable one. It also presents policy makers with some recommendations that can be considered in light of reinvigorating investment in the garment industry.