The Global Apparel Value Chain, Trade and the Crisis: Challenges and Opportunities for Developing Countries

42 Pages Posted: 20 Apr 2016

See all articles by G. Gereffi

G. Gereffi

Duke University - Department of Sociology - Director, Center on Globalization, Governance & Competitiveness

Stacey Frederick

Duke University - Center on Globalization, Governance, & Competitiveness; North Carolina State University - College of Textiles

Date Written: April 1, 2010

Abstract

This paper examines the impact of two crises on the global apparel value chain: the World Trade Organization phase-out of the quota system for textiles and apparel in 2005, which provided access for many poor and small export-oriented economies to the markets of industrialized countries, and the current economic recession that has lowered demand for apparel exports and led to massive unemployment across the industry?s supply chain. An overarching trend has been the process of global consolidation, whereby leading apparel suppliers (countries and firms alike) have strengthened their positions in the industry. On the country side, China has been the big winner, although Bangladesh, India, and Vietnam have also continued to expand their roles in the industry. On the firm side, the quota phase-out and economic recession have accelerated the ongoing shift to more streamlined global supply chains, in which lead firms desire to work with fewer, larger, and more capable suppliers that are strategically located around the world. The paper concludes with recommendations for how developing countries as well as textile and apparel suppliers can adjust to the crisis.

Keywords: Markets and Market Access, Economic Theory & Research, Free Trade, Labor Policies, Access to Markets

Suggested Citation

Gereffi, Gary and Frederick, Stacey, The Global Apparel Value Chain, Trade and the Crisis: Challenges and Opportunities for Developing Countries (April 1, 2010). World Bank Policy Research Working Paper No. 5281. Available at SSRN: https://ssrn.com/abstract=1596491

Gary Gereffi (Contact Author)

Duke University - Department of Sociology - Director, Center on Globalization, Governance & Competitiveness ( email )

Box 90088
Durham, NC 27708-0204
United States
919-660-5880 (Phone)
919-684-2855 (Fax)

Stacey Frederick

Duke University - Center on Globalization, Governance, & Competitiveness ( email )

Grey Building, Suite 0010, Lower Level
2020 W. Main St.
Durham, NC 27705
United States

HOME PAGE: http://www.cggc.duke.edu

North Carolina State University - College of Textiles ( email )

Raleigh, NC 27695
United States

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