Apparel in South Asia

Apparel is the largest labor-intensive manufacturing industry in South Asia, and is a major employer of women. Although South Asia’s apparel sector benefits from many of the same favorable conditions as East Asia’s, performance in South Asian appar...

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Main Authors: Lopez-Acevedo, Gladys, Robertson, Raymond
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2016
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2016/10/26845357/extended-version-industry-case-study-done-south-asia’s-turn-policies-boost-competitiveness-create-next-export-powerhouse
http://hdl.handle.net/10986/25117
id okr-10986-25117
recordtype oai_dc
spelling okr-10986-251172021-05-25T08:52:13Z Apparel in South Asia Lopez-Acevedo, Gladys Robertson, Raymond export competitiveness apparel sector employment trade policy textile imports trade logistics SME microenterprises female labor force participation global value chains import tariffs environmental standards labor standards working conditions labor unrest Apparel is the largest labor-intensive manufacturing industry in South Asia, and is a major employer of women. Although South Asia’s apparel sector benefits from many of the same favorable conditions as East Asia’s, performance in South Asian apparel remains well below that of East Asia. The objective of this study is to identify the policy changes necessary for South Asia to capitalize on this opportunity. The authors review the apparel sectors in Bangladesh, India, Pakistan and Sri Lanka, and compare them with Vietnam and China. The report uses quantitative data (analysis based on a gravity model, enterprise and buyer surveys) and qualitative information (interviews with leading firms) to identify changes in policies that would enable South Asia to meet the requirements of global buyers. Low productivity and poor trade logistics make it difficult for South Asia’s apparel sector to compete in global markets, despite a cost advantage due to lower wages than other major exporters. Leading firms exhibit that world class operational performance can be achieved in South Asia by investing in training and technology. These firms overcame constraints in the external environment by achieving economies of scale, and in the case of India and Pakistan, by integrating vertically to avoid barriers to sourcing high-quality inputs on the global market. All countries should promote Plug and Play industrial zones with ready to use industrial buildings and facilities to promote women labor force participation, as female workers would be the main beneficiaries of growth in apparel production. 2016-10-06T17:06:52Z 2016-10-06T17:06:52Z 2016-10-05 Working Paper http://documents.worldbank.org/curated/en/2016/10/26845357/extended-version-industry-case-study-done-south-asia’s-turn-policies-boost-competitiveness-create-next-export-powerhouse http://hdl.handle.net/10986/25117 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper South Asia South Asia Bangladesh India Pakistan Sri Lanka
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic export competitiveness
apparel sector
employment
trade policy
textile imports
trade logistics
SME
microenterprises
female labor force participation
global value chains
import tariffs
environmental standards
labor standards
working conditions
labor unrest
spellingShingle export competitiveness
apparel sector
employment
trade policy
textile imports
trade logistics
SME
microenterprises
female labor force participation
global value chains
import tariffs
environmental standards
labor standards
working conditions
labor unrest
Lopez-Acevedo, Gladys
Robertson, Raymond
Apparel in South Asia
geographic_facet South Asia
South Asia
Bangladesh
India
Pakistan
Sri Lanka
description Apparel is the largest labor-intensive manufacturing industry in South Asia, and is a major employer of women. Although South Asia’s apparel sector benefits from many of the same favorable conditions as East Asia’s, performance in South Asian apparel remains well below that of East Asia. The objective of this study is to identify the policy changes necessary for South Asia to capitalize on this opportunity. The authors review the apparel sectors in Bangladesh, India, Pakistan and Sri Lanka, and compare them with Vietnam and China. The report uses quantitative data (analysis based on a gravity model, enterprise and buyer surveys) and qualitative information (interviews with leading firms) to identify changes in policies that would enable South Asia to meet the requirements of global buyers. Low productivity and poor trade logistics make it difficult for South Asia’s apparel sector to compete in global markets, despite a cost advantage due to lower wages than other major exporters. Leading firms exhibit that world class operational performance can be achieved in South Asia by investing in training and technology. These firms overcame constraints in the external environment by achieving economies of scale, and in the case of India and Pakistan, by integrating vertically to avoid barriers to sourcing high-quality inputs on the global market. All countries should promote Plug and Play industrial zones with ready to use industrial buildings and facilities to promote women labor force participation, as female workers would be the main beneficiaries of growth in apparel production.
format Working Paper
author Lopez-Acevedo, Gladys
Robertson, Raymond
author_facet Lopez-Acevedo, Gladys
Robertson, Raymond
author_sort Lopez-Acevedo, Gladys
title Apparel in South Asia
title_short Apparel in South Asia
title_full Apparel in South Asia
title_fullStr Apparel in South Asia
title_full_unstemmed Apparel in South Asia
title_sort apparel in south asia
publisher World Bank, Washington, DC
publishDate 2016
url http://documents.worldbank.org/curated/en/2016/10/26845357/extended-version-industry-case-study-done-south-asia’s-turn-policies-boost-competitiveness-create-next-export-powerhouse
http://hdl.handle.net/10986/25117
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