Meeting the challenge of China:The Vietnamese garment industry in the post MFA era

Although China has diversified into sophisticated, higher value-added exports, it is still a formidable competitor in global markets for basic labour-intensive products. It is the world's largest exporting country of textiles and garments, the archetypical driver of industrial growth both in developed countries in the past and in most newly industrializing countries more recently. When the export restrictions under the Multi-Fibre Arrangement (MFA) ended at the start of 2005, it was predicted that China would greatly increase its market shares at the expense of most competitors, except perhaps India. Vietnam has proved to be an effective competitor in the garment industry in markets where China is dominant. In this article, we investigate how key export-oriented garment suppliers of Vietnam have been coping with competitive challenges in the post MFA era at a time when global buyers have been reorganizing their international production networks. We emphasize the influence of different global value chains on upgrading since Vietnamese suppliers switched to the US market after the implementation of the US Bilateral Trade Agreement in 2001. We note the uneven performance of Vietnamese garment suppliers, with some lagging behind others in upgrading and competitiveness, and their different responses to Vietnam's growing labour shortages. We base the article mainly on interviews conducted over the 2001-2008 period with garment companies and global buyers in Vietnam, Hong Kong and China

Foreign direct investment, processing trade, and the sophistication of China's exports

China's export structure has shown a rapid shift towards more sophisticated industries. While some believe that this trend is a result of processing trade and foreign direct investment, the evidence is mixed. This paper examines variations in level of export sophistication across China's manufacturing industries. We find that an industry's level of export sophistication is positively related to the share of wholly foreign owned enterprises from OECD countries and the share of processing exports of foreign-invested enterprises, and negatively related to the share of processing exports of indigenous Chinese enterprises. Evidence from the relative export prices of Chinese goods, which measure within-product export sophistication, shows a similar pattern

Effects of Ecotourism on Forest Loss in the Himalayan Biodiversity Hotspot Based on Counterfactual Analyses

Ecotourism is developing rapidly in biodiversity hotspots worldwide, but there is limited and mixed empirical evidence that ecotourism achieves positive biodiversity outcomes. We assessed whether ecotourism influenced forest loss rates and trajectories from 2000 to 2017 in Himalayan temperate forests. We compared forest loss in 15 ecotourism hubs with nonecotourism areas in 4 Himalayan countries. We used matching statistics to control for local-level determinants of forest loss, for example, population density, market access, and topography. None of the ecotourism hubs was free of forest loss, and we found limited evidence that forest-loss trajectories in ecotourism hubs were different from those in nonecotourism areas. In Nepal and Bhutan, differences in forest loss rates between ecotourism hubs and matched nonecotourism areas did not differ significantly, and the magnitude of the estimated effect was small. In India, where overall forest loss rates were the lowest of any country in our analysis, forest loss rates were higher in ecotourism hubs than in matched nonecotourism areas. In contrast,in China, where overall forest loss rates were highest, forest loss rates were lower in ecotourism hubs than where there was no ecotourism. Our results suggest that the success of ecotourism as a forest conservation strategy, as it is currently practiced in the Himalaya, is context dependent. In a region with high deforestation pressures, ecotourism may be a relatively environmentally friendly form of economic development relative to other development strategies. However, ecotourism may stimulate forest loss in regions where deforestation rates are low