The Role Of Textile And Clothing Industries In Growth And Develo

2016-12-05 12:45:00

This paper examines the role of textile and clothing (T&C) industries in growth and development strategies in developing countries. It suggests that textiles and clothing industries are important in economic and social terms, in the short-run by providing incomes, jobs, especially for women, and foreign currency receipts and in the longrun by providing countries the opportunity for sustained economic development in those countries with appropriate policies and institutions to enhance the dynamic effects of textiles and clothing. The potential of the textile and clothing industries to contribute to long-run growth and development will depend not only on the attributes (desirable or otherwise) of the investors, but also on the quality and effectiveness of government policies and institutions in developing countries to build on this investment.

Economic aspects The T&C industries are very important for a handful of countries, in terms of trade, GDP and employment and have contributed significantly in several other countries. The T&C industries provide opportunities for export diversification and expansion of manufactured exports for low-income countries that can exploit their labour cost advantages and fill emerging niches and meet buyer demands. There are also dynamic effects of T&C industries and these dynamic effects are greater, the more linkages have been built up between the garment industry and local textile suppliers.

At the macro level there are a number of ways in which the T&C industries affect economic development. • T&C industries are a major contributor to incomes for selected countries. The contribution of T&C production to GDP differs by country but is up to 5% in Sri Lanka, 12% in Cambodia and 15% in Pakistan; • T&C are the dominant source of exports and foreign exchange in several countries. Low income and developing countries such as Cambodia, Bangladesh, Pakistan and Sri Lanka depend on T&C exports for more than 50% of total manufacturing exports (e.g. 80% in Cambodia, 83.5% in Bangladesh); • The employment effects are also significant. Employment in T&C production for least developed and low income countries as a share of total employment in manufacturing ranges from 35% in selected low income countries, 75% in Bangladesh and 90% in other selected LDCs (e.g. Lesotho, Cambodia).

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