Effects of the multifibre arrangement on developing countries : a survey

The purpose of this paper is to review the major findings of existing studies on the Multifibre Arrangement's (MFA) effect, with emphasis on the effects to LDCs, and to suggest the directions for further studies that are needed for a better understanding of the MFA. The paper is composed of six sections. Following the introduction, section 2 examines the dominant features of textile and clothing (T&C)exports from the LDCs. In section 3, the essence of the MFA provisions and their actual development is briefly summarized. These two sections provide a background to the discussion in the later part of the paper. Section 4 surveys the effects of the MFA on importing countries. The effects of the MFA on exporting LDCs are discussed in section 5. Finally, in section 6, a summary and conclusions are given, as well as the directions for further studies which are needed on the subject.Economic Theory&Research,Environmental Economics&Policies,TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT,Trade Policy,Development Economics&Aid Effectiveness

THE IMPACT OF CHINA´S ACCESSION TO WTO ON THE EXPORTS OF DEVELOPING COUNTRIES

Using the "revealed competitive advantage indices" for exports and imports, the paper is devoted to the analyses of the vulnerability of selected developing countries if China´s competitive position is improved due to its entry to WTO. In contrast to the existing literature which concentrates on labour-intensive products as a group, this paper considers products at a disaggregate level since products in the same group are not often homogeneous. In labour-intensive manufactured goods, China competes mainly with South Asian* countries and a few Latin American and African countries. But it also provides them with little demand complementary effects. Nevertheless, some Latin American and African countries may benefit from the expansion of China´s imports of foods and agricultural raw materials. In the final market for capital goods China competes with Asian newly industrializing economies (NIEs) and Association of South-East Asian Nations (ASEAN) countries, and in a limited number of goods with Mexico and Costa Rica. For NIEs, unlike others such competition involves complementary effects, through the import of parts and components, which will over-offset the competition effects in the short- and medium-run. As China develops its capacity to produce components, however, the "competition " effect may dominate. China´s export structure is similar to that of the Republic of Korea and Malaysia in the final market for a number of "finished" capital goods. By contrast, Thailand is vulnerable in clothing, miscellaneous household equipment and electric machinery. Indonesia has little to worry except for furniture. India concentrates mainly on undergarments, and China in outer garments. Bangladesh, Sri Lanka, Pakistan, Viet Nam and Nepal have similar export structure with China in some clothing items, but overall they, particularly Viet Nam have been aggressive in exportation of these products. Sri Lanka and Pakistan also compete with China in toys and sporting goods, but both have shown some strength in their exports. Except Mexico, Costa Rica, Haiti and to some extent Uruguay, the export structure of the Latin American countries is mostly different from that of China. Mexico has a strong competitive position vis-à-vis China in a number of clothing items, but weaker in a few assembly operation. Costa Rica´s competitive advantage has noticeably improved for a number of clothing items and a few assembly operations. Haiti competes with China in 8 products, mostly clothing. It has a strong competitive position in footwear, one clothing item and some base metal. Uruguay´s relative competitive position is weak in a number of labourintensive products. The export structure of African countries is different from that of China, except for Egypt, Morocco, Tunisia and Malawi. These countries have improved their competitive position in their clothing. China´s entry into the WTO will not change, for some time, its market access for textiles and clothing for it to be a threat to other developing countries. In fact, China´s growth in quota for exports to developed countries will increase far less than other developing countries. Nevertheless, if China attempts devaluation the situation could change radically. China´s devaluation is however unlikely. Over a longer-term, much depends on what policy China will pursue in its trade and industrialization. China´s attempt in increasing domestic value added in exports could lead to improvement in its competitiveness in technology/skill intensive products of interest to NIEs and the ASEAN.

The 'Sophistication' Of Exports: A New Measure Of Product Characteristics

Trade data are often classified by product characteristics in the trade, technology and development literature to analyze trade patterns, competitive performance and structural change. However, existing classifications are constrained in that trade data are far more detailed than the industry data on which categories are based (e.g. current classifications only have 4-5 technology groups). We propose a new classification - 'sophistication' - as a means of analyzing product characteristics in great detail, based on the average income of exporting economies. Sophistication captures more than technical characteristics; it includes product differentiation, production fragmentation, resource availability and other factors. However, it has the advantage of providing unique continuous scores for each product at any level of detail. We calculate sophistication scores for 237 exports at the 3-digit SITC level and 766 exports at the 4-digit level for 1990 and 2000 (detailed values can be provided on request). We show sophistication scores for exports by selected countries, technology groups and industries. Our intention is to provide a database for further empirical analysis.

Looking back to look forward: Setting future research agenda for international business in textiles and clothing industry

© 2019 Jungseok Research Institute of International Logistics and Trade All rights reserved. Since its development by Tinbergen (1962), the gravity model of international trade has widely been applied to analyse the effect of various factors on trade relationships between countries. Past studies on trade gravity vary not only in the mix of model variables but also in how they have come into the analysis. This study reviews existing literature on bilateral trade with an aim to identify influential predictors such as changes of trade policy and national development strategy and highlight important yet understudied factors such as transport and logistics infrastructure, and sustainable development. To demonstrate the needs to examine these critical factors across industry sectors, the study presents the case of textiles and clothing (T&C) production and trade between China and its trading partners as an illustration. Through the literature review, it shows how the gravity model can be applied to address current issues in international trade arena such as the potential trade war between the US and China, China\u27s Belt and Road Initiative (BRI), and other important factors shaping global T&C trade. This study offers future research directions for analysis of global trade in the T&C industry and contributes to the wider literature of international business and trade

International Competitiveness—Where Pakistan Stands?

The concept of competitiveness has been widely accepted and has become a part of discussion in world-wide forums. Today global economy cannot be explained in the same manner as it was a few decades ago. Improved competitiveness of economies is a need of the day and ability to compete in the world market is of major concern. This paper attempts to assess the position of Pakistan in the International Competitiveness. As a survey paper, the concept, definition and the measurement of competitiveness have been analysed further to assess Pakistan’s position in the region. Competitiveness is linked with export performance of other trading and non trading countries. Pakistan’s export performance is analysed in this context. Lessons for Pakistan have been drawn on the basis of experiences of emerging economies. It has been concluded that countries can strengthen their export markets with the passage of time. They need to improve the governance as well as technological progress to increase high-tech exports. Developing countries like Pakistan start from low technology and with passage of time shift to improved technologies. Technology-based activities help improving export performance that brings competitiveness of a country. The paper also suggests a model to government of Pakistan which describes that high technology exports will be a result of extensive Research and Development (R&D) using human capital as an investment in the country. The success depends upon the combined efforts of the government, individuals and business initiatives both in public and private sectors.Competitiveness, Growth Performance

International Competitiveness  Where Pakistan Stands?

The concept of competitiveness has been widely accepted and has become a part of discussion in world-wide forums. Today global economy cannot be explained in the same manner as it was a few decades ago. Improved competitiveness of economies is a need of the day and ability to compete in the world market is of major concern. This paper attempts to assess the position of Pakistan in the International Competitiveness. As a survey paper, the concept, definition and the measurement of competitiveness have been analysed further to assess Pakistans position in the region. Competitiveness is linked with export performance ofother trading and non trading countries. Pakistans export performance is analysed in this context. Lessons for Pakistan have been drawn on the basis of experiences of emerging economies. It has been concluded that countries can strengthen their export markets with the passage of time. They need to improve the governance as well as technological progress to increase high-tech exports. Developing countries like Pakistan start from low technology and with passage of time shift to improved technologies. Technology-based activities help improving export performance that brings competitiveness of a country. The paper also suggests a model to government of Pakistan which describes that high technology exports will be a result of extensive Research and Development (R&D) using human capital as an investment in the country. The success depends upon the combined efforts of the government, individuals and business initiatives both in public and private sectors.competitiveness, Growth Performance

Looking back to look forward: setting future research agenda for international business in textiles and clothing industry

Since its development by Tinbergen (1962), the gravity model of international trade has widely been applied to analyse the effect of various factors on trade relationships between countries. Past studies on trade gravity vary not only in the mix of model variables but also in how they have come into the analysis. This study reviews existing literature on bilateral trade with an aim to identify influential predictors such as changes of trade policy and national development strategy and highlight important yet understudied factors such as transport and logistics infrastructure, and sustainable development. To demonstrate the needs to examine these critical factors across industry sectors, the study presents the case of textiles and clothing (T&C) production and trade between China and its trading partners as an illustration. Through the literature review, it shows how the gravity model can be applied to address current issues in international trade arena such as the potential trade war between the US and China, China’s Belt and Road Initiative (BRI), and other important factors shaping global T&C trade. This study offers future research directions for analysis of global trade in the T&C industry and contributes to the wider literature of international business and trade

What Opportunities from the “One Belt, One Road” Initiative for Manufacturing? The Case of Hong Kong\u27s Textiles and Clothing Sectors

Past studies have investigated the trade relationship between countries by analysing economic and political related factors using gravity models. Numerous factors have been empirically tested in the literature which are proposed to be important contributors in determining trade flow. This study addresses the research questions, what are the key factors and dimensions that influence bilateral trade. It focuses on identifying the key factors and dimensions for the expansion of Textile and Clothing (T&C) manufacturing by Chinese manufacturers to other countries, in light of China’s recent One Belt One Road (OBOR) initiative. This paper will critically review bilateral trade and international business literature that uses the gravity model from 1960 to 2017 to discuss factors previously investigated by researchers. The review reflects on the factors commonly explored in the literature, but also highlights the absence of sustainability factors given the importance of sustainability and CSR issues in today’s global T&C industry. This study will contribute to the wider literature of international business and trade, particularly for the expansion of Chinese T&C manufacturing to other countries which are promoted through China’s OBOR initiative

What are the opportunities for manufacturing in the “one belt one road” initiative? The case of Hong Kong’s textiles and clothing sector

The One Belt, One Road (hereafter OBOR) initiative is a development strategy launched by China in 2015. Its aim is to increase economic co-operation among countries along the China’s Silk Road Economic Belt and 21st Century Maritime Silk Road that connect Asia, Europe and Africa. As one of China’s important economic drivers, Hong Kong’s anticipated gains taking part in this initiative are substantial. This is particularly true for companies in the textiles and clothing (T&C) sectors, as the OBOR initiative offers investment opportunities in developing low-cost production bases in developing countries and promotes global trade. The main objective of this paper is twofold. First, it investigates how Hong Kong can strengthen its “superconnector” role, facilitating sustainable trade and development in the T&C industries among some OBOR countries. Specific measures are identified so that T&C companies in Hong Kong can establish and facilitate technological upgrades and transformation to potential production facilities in some developing countries under the OBOR initiative. This would contribute to the sustainable development of the T&C sectors in Hong Kong. Second, the study extends the gravity trade model to analyze the development of T&C trade patterns between Hong Kong and OBOR countries. Especially it covered some of the key factors not considered in previous studies, such as Logistics Performance Index (LPI), demographical factors, and those related to the business environment and policies. The analysis covers the impacts of country-specific, social, economic and supply chain factors on T&C trade. Based on the results, recommendations are provided to address how Hong Kong helps to facilitate trade and development of the T&C sectors under the OBOR initiative