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DETERMINANTS OF LABOR-INTENSIVE EXPORTS BY THE DEVELOPING COUNTRIES: A CROSS COUNTRY ANALYSIS

DETERMINANTS OF LABOR-INTENSIVE EXPORTS BY THE DEVELOPING COUNTRIES: A CROSS COUNTRY ANALYSIS It is widely acknowledged that the export-oriented garment and textile industries have been playing important role on the overall economic development in developing countries. However, the performance of the developing countries in exporting garment and textiles is in fact, highly heterogeneous. While some of the developing countries such as, China, Vietnam and Bangladesh have been highly successful in exporting highly labor-intensive garment and textiles products, not all of the developing countries have been equally successful in doing so. Using cross-country panel data, an attempt has been made in this paper to ascertain the importance of infrastructure and business environment in explaining the heterogeneous performance in exporting garment and textiles by the developing countries. The paper empirically demonstrates that in addition to the availability of cheap labor, the availability of basic infrastructure, and a business friendly environment significantly affect the export of labor-intensive garment and textiles by the developing countries. The paper, thus, suggests to invest on infrastructure, and to develop a business friendly environment in developing countries to strongly link the growth potentials of labor-intensive products and economic growth. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Singapore Economic Review World Scientific Publishing Company

DETERMINANTS OF LABOR-INTENSIVE EXPORTS BY THE DEVELOPING COUNTRIES: A CROSS COUNTRY ANALYSIS

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References (49)

Publisher
World Scientific Publishing Company
Copyright
Copyright ©
ISSN
0217-5908
eISSN
1793-6837
DOI
10.1142/S021759081450043X
Publisher site
See Article on Publisher Site

Abstract

It is widely acknowledged that the export-oriented garment and textile industries have been playing important role on the overall economic development in developing countries. However, the performance of the developing countries in exporting garment and textiles is in fact, highly heterogeneous. While some of the developing countries such as, China, Vietnam and Bangladesh have been highly successful in exporting highly labor-intensive garment and textiles products, not all of the developing countries have been equally successful in doing so. Using cross-country panel data, an attempt has been made in this paper to ascertain the importance of infrastructure and business environment in explaining the heterogeneous performance in exporting garment and textiles by the developing countries. The paper empirically demonstrates that in addition to the availability of cheap labor, the availability of basic infrastructure, and a business friendly environment significantly affect the export of labor-intensive garment and textiles by the developing countries. The paper, thus, suggests to invest on infrastructure, and to develop a business friendly environment in developing countries to strongly link the growth potentials of labor-intensive products and economic growth.

Journal

The Singapore Economic Review – World Scientific Publishing Company

Published: Dec 1, 2014

Keywords: Developing country garment and textile export infrastructure business environment

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