Who Benefits from Export-Led Growth? Evidence from Madagascar's Textile and Apparel Industry

Posted: 30 Jun 2008

See all articles by Alessandro Nicita

Alessandro Nicita

World Bank - Development Research Group (DECRG)

Date Written: June 2008

Abstract

Fuelled by low labour costs and preferential trade agreements, exports of textile products originating from Sub-Saharan countries have grown dramatically in the last decades. This paper analyses some of the implications that export growth in the textile and apparel sector have for social welfare and poverty reduction in Madagascar. The paper proposes a simulation exercise utilising household level data and a methodology that combines the wage premium literature with matching methods. The results point to a large variation in the distribution of the benefits from export growth, with skilled workers and urban areas benefiting most. From a gender perspective, women are found to benefit substantially less than men. Although total welfare effects are significant, the benefits are largely reaped by non-poor households. From a poverty perspective, export-led growth in the textile and apparel sector is expected to have only a small effect on overall poverty.

Keywords: F16, I30, L67

Suggested Citation

Nicita, Alessandro, Who Benefits from Export-Led Growth? Evidence from Madagascar's Textile and Apparel Industry (June 2008). Journal of African Economies, Vol. 17, No. 3, pp. 465-489, 2008, Available at SSRN: https://ssrn.com/abstract=1153301 or http://dx.doi.org/ejm030

Alessandro Nicita (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-473-4066 (Phone)
202-522-1159 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
689
PlumX Metrics