The Garment Industry in Cambodia: Its Role in Poverty Reduction through Export-Oriented Development

Cambodia's export-oriented garment industry has contributed greatly to poverty reduction in the country through employment of the poor. This paper provides a statistical verification of this contribution based on firm-level data from 164 sampled companies collected in 2003. Its main conclusions confirm the substantial impact that employment in the garment industry has had on poverty reduction in Cambodia. Firstly, entry-level workers receive wages far above the poverty line. Secondly, females make up the predominant share of the main category jobs in the industry. Thirdly, barriers to employment and to promotions up to certain job categories are not high in terms of education and experience. Another important finding is that a typical sample firm exhibited high profitability, although there was wide variation in profitability among firms. This average of high profitability could be a good predictor of Cambodia's viability in the intensified competition since the phase out of the Multi-Fiber Arrangement (MFA) at the beginning of 2005. A point of note is that Cambodia's pattern of industrial development led by a labor-intensive industry is similar to that of neighboring countries in East Asia which earlier went through the initial stage of industrial development, except that Cambodia has lacked a strong government industrial promotion policy which characterized the earlier group.

Global Value Chain Linkages of Manufacturing Export Firms: A Study of The Kannur Home Textile Industry

The literature on the involvement of developing countries in trade has focused on the effects of different aspects of globalization on firms, regions and countries. The study attempts to examine how an export based industry, locallyembedded and originated on the basis of regional strengths has been inserted into the global trade framework. Though the unit of analysis is the manufacturing export firm in the region of Kannur, it represents the entire home textile export industry from the state of Kerala, as close to 90% of fabric exports in home furnishing material, textiles for upholstery and decoration and stitched or fused, and branded made ups are from the region. From a global perspective, how developing countries face newer trade restrictions and overcome non quota barriers by firm and region specific activities within a value chain framework is a major research area, which has already contributions from the Ludhiana woolen cluster (Tewari,1999 ) and the Tirupur cluster in India (Cawthorne, 1995). The study contributes to the value chain literature by examining the governance and upgrading as well as how firms benefit from linkages. India has a number of export oriented agglomerations or regions where firms have been serving export markets for many years. In many cases it is no longer the supply side policy actions that determine how they are able to penetrate new markets or expand existing market share. Based on this study it becomes possible to understand how the global value chain operates in these different industries to examine whether there is a danger of immiserisation of growth or low road growth

The Role of Railways in Export-Led Growth: The Case of Uruguay, 1870-1913

The social saving literature has highlighted the indispensable role that railways played before 1914 in several Latin American export-oriented economies, such as Mexico, Brazil and Argentina. The article analyses the case of Uruguay, a country that, by 1914, had built one of the densest railway networks in Latin America. The article shows that, in contrast to what happened in other economies of the region, the resource saving effects of the Uruguayan railways during the first globalisation were tiny due to the small share that railway output accounted for within the country's gross domestic product (GDP). Three complementary reasons are suggested to explain that result, namely: the geographical structure of the country; its sectoral specialisation; and the small scale of the Uruguayan economy. Due to these three characteristics, Uruguay was unable to benefit from railways in the way that other export-oriented Latin American economies did during the first period of globalisation. This conclusion draws attention to the geographic-specific character of railway technology.

Is export orientation a major motivator for the adoption of food safety systems in the Turkish dried fig firms?

Food safety management systems (FSMSs) and the scrutinisation of the food safety practices that are intended for adoption on the firm level both offer strategic value to the dried fig sector. This study aims to prove the hypothesis that export orientation is a major motivating force for the adoption of food safety systems in the Turkish dried fig firms. Data were obtained from 91 dried fig firms located in Aydin, Turkey. Interviews were carried out with firms’ managers/owners using a face-to-face questionnaire designed from May to August of 2010. While 36.3 percent of the interviewed firms had adopted one or more systems, the rest had no certification. A binomial logistic econometric model was employed. The parameters that influenced this decision included contractual agreements with other firms, implementation of good practices by the dried fig farmers, export orientation and cost-benefit ratio. Interestingly, the rest of the indicators employed had no statistically significant effect on adoption behaviour. This paper focusses on the export orientation parameter directly in order to test the validity of the main research hypothesis. The estimated marginal effect suggests that when dried fig firms are export-oriented, the probability that these firms will adopt food safety systems goes up by 39.5 percent. This rate was the first range observed among all the marginal probability values obtained and thus verified the hypothesis that export orientation is a major motivator for the adoption of food safety systems in the Turkish dried fig firms.

E-commerce and export promotion policies for small- and medium-sized enterprises: East Asian and Latin American experiences

Includes bibliography

Structural change and productivity growth 20 years later: old problems, new opportunities. Summary

Includes bibliography

Is the Vietnamese garment industry at a turning point? : upgrading from the export to the domestic market

Vietnam’s garment industry has been loosely characterized by the duality based on market orientation: export and domestic. Export-oriented garment suppliers were typically SOEs and foreign invested firms, while those producing for the domestic market have been mostly small, private companies. With a booming economy, other industrial sectors have emerged, and the garment industry is no longer the sector most favored by workers. Wage rates have been increasing, and a supplier’s ability to cope with this through successful upgrading has been the key determinant of whether it can further grow and flourish. Those who fail to cope are finding themselves in an increasingly difficult position. This paper looks at both the export- and domestic-oriented garment suppliers, and attempts to highlight how the industry can further develop by examining the bottlenecks that vary depending on the type of supplier. It suggests that in the long run, upgrading and value addition in the domestic market will be the key strategy.

Openness and economic growth

The themes of this thesis are that international trade and foreign direct investment (FDI) are closely related and that they have varying impacts on economic growth in countries at different stages of development. The thesis consists of three empirical studies. The first one examines the causal relationship between FDI and trade in China. The empirical study is based on a panel of bilateral data for China and 19 home countries/regions over the period 1984-98. The specific feature of the study is that econometric techniques designed specially for panel data are applied to test for unit roots and causality. The results indicate a virtuous procedure of development for China. The growth of China’s imports causes growth in inward FDI from a home country/region, which in turn causes the growth of exports from China to the home country/region. The growth of exports causes the growth of imports. This virtuous procedure is the result of China’s policy of opening to the outside world. China has been encouraging export-oriented FDI and reducing trade barriers. Such policy instruments should be further encouraged in order to enhance economic growth. In the second study, an extended gravity model is constructed to identify the main causes of recent trade growth in OECD countries. The specific features include (a) the explicit introduction of R&D and FDI as two important explanatory variables into an augmented gravity equation; (b) the adoption of a panel data approach, and (c) the careful treatment of endogeneity. The main findings are that the levels and similarities of market size, domestic R&D stock and inward FDI stock are positively related to the volume of bilateral trade, while the geographical distance, exchange rate and relative factor endowments, has a negative impact. These findings lend support to new trade, FDI and economic growth theories. The third study evaluates the impact of openness on growth in different country groups. This research distinguishes itself from many existing studies in three aspects: first, both trade and FDI are included in the measurement of openness. Second, countries are divided' into three groups according to their development stages to compare the roles of FDI and trade in different groups. Third, the possible problems of endogeneity and multicollinearity of FDI and trade are carefully dealt with in a panel data setting. The main findings are that FDI and trade are both beneficial to a country's development. However, trade has positive effects on growth in all country groups but FDI has positive effects on growth only in the country groups which have had moderate development. The findings suggest FDI and trade may affect growth under different conditions.

Az exportteljesítmények és a hátterükben álló vállalati jellemzők elemzése (Export performance clusters of the Hungarian enterprises)

A tanulmány célja a Magyarországon működő exportáló vállalatok jellemzőinek feltárása volt a 2009-es vállalati versenyképességi felmérés alapján. Több tanulmány vizsgálta a vállalatok exportteljesítményét vállalati méret és tulajdonosi szerkezet szerinti bontásban, az elemzésben a szerző viszont ettől eltérő szemléletmódot alkalmazott. A vállalatok exportteljesítménye áll (exportértékesítés volumene, aránya, exportárbevétel változása, jövedelmezőség), a vállalati csoportképzés, klaszterelemzés középpontjában. Három jól elkülöníthető klasztert sikerült azonosítani: a jelentős exporthányaddal és folyamatos növekedéssel jellemezhető sikeres exportáló vállalatok csoportját, a stagnálással, s gyakran csökkenő exportértékesítéssel jellemezhető vállalatcsoportot, s végül a harmadik klasztert azok a jelenleg még alacsony export-ár bevétellel és alacsony exportaránnyal jellemezhető vállalatok képezték, melyekre a növekedés és a kiugróan magas jövedelmezőség volt a jellemző. Az elemzés egyediségét az adja, hogy a vállalati versenyképességi felmérés adatbázisa lehetővé tette a különböző exportteljesítmények hátterében álló működési jellemzők vizsgálatát, amelynek eredményeit a cikk bemutatja. Fő következtetésként megállapítható, hogy a sikeres exportáló vállalatok csoportja mindegyik jellemző szerint jobb működési jellemzőkkel rendelkezik a másik két csoporthoz viszonyítva. / === / The purpose of the paper is to reveal the main characteristics of the Hungarian export oriented firms. It is based on the Hungarian Competitiveness Research Survey 2009. 85% of enterprises were small or medium size in the sample. The aim of the analysis was to identify main factors and tendencies of the overall export performance. Several papers discussed the export activities of firms according to their size and ownership structure in Hungary. A different method was used here. The overall export performance (measured by volume, change, and share of export revenues, and firm profitability ratios) was put in the centre of cluster analysis. Three different clusters were identified. Firms in the firstcluster had significant export performance and growth rate. The second cluster was the group of stagnating firms and the third one contained those whose export performance was low but signaled growth with excellent profitability ratios. The uniqueness of the paper derived from the Competitiveness Research Survey because it provided an opportunity to analyse the connection between export performance and other management and operational characteristics of enterprises. The paper may induce futher research in exploring main enterprise level factors of export performance of the Hungarian firms.

Crecimiento, instituciones e hidrocarburos : el proyecto petrolero mexicano en perspectiva histórica comparada (1938-2000)

En este trabajo se analiza la política petrolera mexicana durante el período 1938-2000 y su aportación al crecimiento económico mexicano. La orientación de la producción petrolera permite distinguir dos modelos de gestión de la industria petrolera. El primero de ellos; entre 1938-1976 tuvo por finalidad el aprovisionamiento energético del mercado interior a bajos precios. El segundo a partir de 1976 orientado hacia la exportación y la captura de la renta petrolera internacional. Esta ruptura en la política petrolera asociada constituye un caso interesante en sí mismo porque permite comparar los efectos de dos políticas totalmente opuestas sobre el crecimiento económico y sobre el desempeño de la propia industria petrolera en un país donde el Estado tiene derechos de propiedad exclusivos sobre el sector petrolero. Por ello, se aborda el tema como una problemática institucional que toma en cuenta tanto las características internas de México como la dinámica del mercado petrolero internacional. Se incide en el hecho de que el Estado mexicano ha utilizado a la industria petrolera y; concretamente los recursos que ésta genera no sólo como un instrumento para favorecer el crecimiento económico del país sino también para mantener el control del poder político frente a la élite económica. Así el inmovilismo institucional; la falta de ingresos e inversiones propias y el comportamiento rentista del Estado parecen haber condenado al sector petrolero mexicano al atraso y la ineficiencia. De este modo; se focaliza en las interrelaciones entre las instituciones económicas y políticas como elemento explicativo del por qué la industria petrolera no ha logrado convertirse en un elemento dinamizador del crecimiento económico mexicano en el largo plazo.

Crawling up the value chain: domestic institutions and non-traditional foreign direct investment in Brazil, 1990-2010

Brazil attracted relatively little innovation-intensive and export-oriented foreign investment during the liberalization period of 1990 to 2010, especially compared with competitors such as China and India. Adopting an institutionalist perspective, I argue that multinational firm investment profiles can be partly explained by the characteristics of investment promotion policies and bureaucracies charged with their implementation. Brazil's FDI policies were passive and non-discriminating in the second half of the 1990s, but became more selective under Lula. Investment promotion efforts have often been undercut by weakly coordinated and inconsistent institutions. The paper highlights the need for active, discriminating investment promotion policies if benefits from non-traditional FDI are to be realized.