TY - JOUR
T1 - Determinants of labor-intensive exports by the developing countries
T2 - A cross country analysis
AU - Mottaleb, Khondoker Abdul
AU - Kalirajan, Kaliappa P.
N1 - Publisher Copyright:
© 2014 World Scientific Publishing Company.
PY - 2014/12/25
Y1 - 2014/12/25
N2 - It is widely acknowledged that the export-oriented garment and textile industries have been playing important role on the overall economic development in developing countries. However, the performance of the developing countries in exporting garment and textiles is in fact, highly heterogeneous. While some of the developing countries such as, China, Vietnam and Bangladesh have been highly successful in exporting highly labor-intensive garment and textiles products, not all of the developing countries have been equally successful in doing so. Using cross-country panel data, an attempt has been made in this paper to ascertain the importance of infrastructure and business environment in explaining the heterogeneous performance in exporting garment and textiles by the developing countries. The paper empirically demonstrates that in addition to the availability of cheap labor, the availability of basic infrastructure, and a business friendly environment significantly affect the export of labor-intensive garment and textiles by the developing countries. The paper, thus, suggests to invest on infrastructure, and to develop a business friendly environment in developing countries to strongly link the growth potentials of labor-intensive products and economic growth.
AB - It is widely acknowledged that the export-oriented garment and textile industries have been playing important role on the overall economic development in developing countries. However, the performance of the developing countries in exporting garment and textiles is in fact, highly heterogeneous. While some of the developing countries such as, China, Vietnam and Bangladesh have been highly successful in exporting highly labor-intensive garment and textiles products, not all of the developing countries have been equally successful in doing so. Using cross-country panel data, an attempt has been made in this paper to ascertain the importance of infrastructure and business environment in explaining the heterogeneous performance in exporting garment and textiles by the developing countries. The paper empirically demonstrates that in addition to the availability of cheap labor, the availability of basic infrastructure, and a business friendly environment significantly affect the export of labor-intensive garment and textiles by the developing countries. The paper, thus, suggests to invest on infrastructure, and to develop a business friendly environment in developing countries to strongly link the growth potentials of labor-intensive products and economic growth.
KW - Developing country
KW - business environment
KW - garment and textile export
KW - infrastructure
UR - http://www.scopus.com/inward/record.url?scp=84928485654&partnerID=8YFLogxK
U2 - 10.1142/S021759081450043X
DO - 10.1142/S021759081450043X
M3 - Article
SN - 0217-5908
VL - 59
JO - Singapore Economic Review
JF - Singapore Economic Review
IS - 5
M1 - 1450043
ER -