Garment Industry in Low-Income Countries

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.