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Misfired Promotion of the Export-Oriented Garment Industry in Ethiopia

In: Cluster-Based Industrial Development

Author

Listed:
  • Tetsushi Sonobe
  • Keijiro Otsuka
Abstract
The US preferential trade policy AGOA (the African Growth and Opportunity Act) was signed into law in 2000. It has provided garment industries in sub-Saharan Africa with duty-free and quota-free access to the US market while allowing the use of third-country fabric as an input. This opportunity is similar to the one given to the Bangladeshi garment industry around 1980 through the export restriction on Korean and other East Asian garment producers under the Multi-Fiber Arrangement (MFA). Following the lead of Daewoo, a number of East Asian garment producers undertook technology transfers to and direct investments in Bangladesh in response to the MFA export restriction. Bangladeshi businessmen and the government of Bangladesh took full advantage of this new opportunity to develop their garment industry into one of the leading garment exporters in the world and the single most important industry in the country, as we saw in the previous chapter. Is this success of Bangladesh being replicated in sub-Saharan Africa (SSA)?

Suggested Citation

  • Tetsushi Sonobe & Keijiro Otsuka, 2011. "Misfired Promotion of the Export-Oriented Garment Industry in Ethiopia," Palgrave Macmillan Books, in: Cluster-Based Industrial Development, chapter 9, pages 195-219, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-29512-4_9
    DOI: 10.1057/9780230295124_9
    as

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