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Palgrave Macmillan

The Garment Industry in Low-Income Countries

An Entry Point of Industrialization

ISBN 9781137383181
Publication Date May 2014
Formats Ebook (PDF) Ebook (EPUB) Hardcover 
Publisher Palgrave Macmillan
Series IDE-JETRO Series

The diversification of economic structure is a central issue in economic development particularly for low-income countries. In the past many countries began industrialization with labor-intensive industries, typically the textile and garment industry. This study examines increasing concerns over the sustainability of growth and the degradation in working conditions throughout the ongoing globalization and trade liberalization. It explores the means through which the garment industry contributes to industrialization, poverty reduction, empowerment of undereducated workers, in particular female laborers, and shared growth in contemporary low-income countries. Through seven in-depth studies of countries - Bangladesh, Cambodia, Kenya, Madagascar, Myanmar, Pakistan, Vietnam and a cross-country study - it demonstrates dynamism in the industry which successfully leads to growth under the trade liberalization.
The Garment Industry in Low-Income Countries provides evidence against the argument that the garment industry is a static and non-innovative activity, and even a 'dead-end sector of industrialization.' It demonstrates heterogeneity within and across countries in terms of growth performance, productivity, and product upgrading. It also explores conditions of the labor market with respect to wages and female labor participation, access to the export markets and  business environment across different countries. By incorporating the diverse experiences in seven countries, this text provides a broader range of implications of the development of the garment industry on industrial dynamism in low-income countries.

Takahiro Fukunishi is an Associate Senior Research Fellow at the Institute of Developing Economies, Japan External Trade Organization (IDE-JETRO). He received a PhD in economics from the School of Oriental and African Studies (SOAS), University of London, UK. He has recently edited, Delivering Sustainable Growth in Africa: African Farmers and Firms in a Changing World, Palgrave Macmillan, 2013.

Tatsufumi Yamagata is Secretary General and Professor at the Institute of Developing Economies Advanced School (IDEAS). He received his PhD in economics from the University of Rochester, USA. He is also a co-editor of Poverty Reduction and Beyond, Palgrave Macmillan, 2009.

1. Introduction: Dynamism of Garment Industry in Low-income Countries; Takahiro Fukunishi and Tatsufumi Yamagata
2. Cambodia: Growth with Better Working Conditions; Yoko Asuyama and Seiha Neou
3. Bangladesh: Market Force Supersedes Control; Tatsufumi Yamagata
4. Vietnam: Upgrading from the Export to the Domestic Market; Kenta Goto
5. Pakistan: Challenges for Women's Labor Force Participation; Momoe Makino
6. Myanmar: Promised Growth with Restored Market Access?
7. Madagascar: Unyielding Growth amid the Political Turmoil; Takahiro Fukunishi and Herinjatovo Aimé Ramiarison
8. Kenya: Stagnation in the Liberalized Markets; Takahiro Fukunishi
9. Cross-Country Comparison of Firm Performance: Bangladesh, Cambodia, and Madagascar; Takahiro Fukunishi


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