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Regionalism, end markets and ownership matter: Shifting dynamics in the apparel export industry in Sub Saharan Africa

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  • Morris, Mike
  • Staritz, Cornelia
  • Plank, Leonhard
Abstract
This paper shows the importance of ownership, end markets and regionalism within the global value chain (GVC) conceptual framework. This is done through unpacking the development trajectories of the major Sub Saharan African (SSA) apparel export industries (Mauritius, Madagascar, Kenya, Lesotho, Swaziland) against the backdrop of global and regional trade regime changes and the manner in which different supplier firms react to these opportunities and/or constraints. These trajectories demonstrate the emergence of a new regionalism centred around investment and differentiated end markets. Ownership characteristics of supplier firms shape the ability to shift between different end markets and respond to lead firm requirements; and the level of their local and regional embeddedness impacts on different forms of upgrading. More locally and regionally embedded firms in these SSA countries have been able to shift with uneven success to new, and in particular regional, markets. In contrast, Asian-owned transnational producers remain focused on the US market with limited market opportunities and upgrading potential. Different types of ownership and embeddedness dynamics are therefore important to explain the co-evolution of highly differentiated value chain dynamics creating a variety of apparel industrialization trajectories in the apparel export industry in SSA.

Suggested Citation

  • Morris, Mike & Staritz, Cornelia & Plank, Leonhard, 2014. "Regionalism, end markets and ownership matter: Shifting dynamics in the apparel export industry in Sub Saharan Africa," Working Papers 46, Austrian Foundation for Development Research (ÖFSE).
    • Handle: RePEc:zbw:oefsew:46
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    References listed on IDEAS

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    Cited by:

    1. Carlo Pietrobelli & Cornelia Staritz, 2018. "Upgrading, Interactive Learning, and Innovation Systems in Value Chain Interventions," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 557-574, July.
    2. Giovanni Pasquali & Aarti Krishnan & Jakob Engel, 2021. "Pulling up or binding down: a review of upgrading trajectories in apparel and agro-processing global value chains for developing countries," WIDER Working Paper Series wp-2021-112, World Institute for Development Economic Research (UNU-WIDER).
    3. Staritz, Cornelia & Frederick, Stacey, 2016. "Harnessing foreign direct investment for local development? Spillovers in apparel global value chains in sub-Saharan Africa," Working Papers 59, Austrian Foundation for Development Research (ÖFSE).

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    Keywords

    global value chains; apparel; upgrading; ownership; Sub Saharan Africa; global value chains; apparel; upgrading; ownership; Sub Saharan Africa;
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