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International textile trading regime and textile industry development in the developing countries

Posted on:2005-06-05Degree:Ph.DType:Dissertation
University:Auburn UniversityCandidate:Traore, Moussa KalifaFull Text:PDF
GTID:1459390008998612Subject:Economics
Abstract/Summary:
The quasi non-presence of the African textile industry and its insignificant position in the global economy probably have their causes deeply rooted in the developmental stage of the industry in Africa. This formidable limitation arises from the coexistence of organizational and economic systems that do not prepare any industry in this region to compete in the world market. However, with the globalization of the world economy, regional, as well as individual, market boundaries are melting. Production is now distributed worldwide in search of raw material, cheap labor, and environmental conditions that are conducive to cost minimization and, hence, profit maximization.; The textile and apparel industrial complex, especially the apparel sector, is one of the most labor-intensive of the manufacturing industries. It is suitable for low-skilled workers and has one of the lowest investment levels required per worker. Many countries endowed with abundant cheap labor have used this industry to access the industrialization era. However, it is still under-developed in scores of developing countries such as those in Sub-Saharan Africa (SSA).; The United States Trade and Development Act 2000 (HR 434), commonly known as the African Growth and Opportunity Act (AGOA), was signed into law in May 2000. The Act, which provides duty and quota preferences to the US market for various textile and apparel goods from Sub-Saharan Africa (SSA), appears to be the light at the end of the tunnel for that region. However, the benefits of this bill to both the US and the Sub-Saharan countries are contingent on many parameters. The key question addressed in this study is: "How can the SSA use this helping hand policy, one of the SSA's best opportunities, to develop an exportable textile and apparel sector in order to promote economic development and industrialization of SSA countries?"; Although a primary factor, success in this sector cannot rely solely on U.S. trade policies. Rather, success must come from the combined efforts of a country's industrial and trade policies, as well as the drive and strategies initiated by individual companies in the industry. The role of local and regional governments is both necessary and critical. Meanwhile, it will be the entrepreneurial drive of the SSA business community, coupled with its managerial prowess, that will make this enterprise competitive and create a sector capable of leading the economic development and industrialization effort for the region. Based on the rich and successful experience of the East Asian and Caribbean Basin countries, an apparel and textile industry development model for the SSA is proposed here. The model necessitates the creation of competency centers based on a country's factor endowment, and is expected to create a synergy that should stimulate and spread the development of the industry throughout the SSA region.
Keywords/Search Tags:Industry, Textile, Development, SSA, Countries, Region
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