Industrial upgrading in sub-Sahara Africa: the competitive impact of China on supplier linkage development potentials of resident Asian entrepreneurs

International Journal of Technological Learning, Innovation and Development

Volumn 3, Issue 3, 2010, Pages 272-292

  Na Allah, Abdelrasaq ^a   Muchie, Mammo ^a,b  

^a TSHWANE UNIVERSITY OF TECHNOLOGY   (South Africa)

^b AALBORG UNIVERSITY   (Denmark)

Author keywords

apparel; China; global value chain; industrial upgrading; sub Sahara Africa; supplier linkage development

Indexed keywords

EID: 84883671528     PISSN: 17531942     EISSN: 17531950     Source Type: Journal    
DOI: 10.1504/IJTLID.2010.036494     Document Type: Article

References (40)

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32. The Agreement on Textile and Clothing came into force on 1 January in 1995 to replace the Multi-Fibre Agreement (MFA) which had hitherto governed trade in textile and clothing between developing and developed countries. Its aim was principally to secure removal of restrictions applied by some developed countries under the MFA regime to their imports of textiles and clothing items from developing countries over a ten year period.
33. The AGOA is a trade related development assistance initiative of the USA. It was launched in May 2000 to provide preferential market access to US imports of apparel and other products originating from qualifying SSA countries. One study reckons that about 10% of the 50,000 jobs that AGOA helped create for Lesotho between 1999 and 2003 was lost during the crisis that dawned with the expiration of ATC quota restrictions (Rolfe and Woodward, 2005).
34. In a conceptually related treatment Coe et al. (2004) describe how the entry of BMW (an automobile MNC) into Eastern Bavaria helped facilitate the emergence of local suppliers in the area: upon commencement of operations in an environment with no visible presence of domestic component suppliers, BMW deployed its significant global buying power to persuade two US suppliers (Lear Corp. and Modine) to establish subsidiary plants in Bavaria.
35. The acronym ‘NIEs’ stands for Newly Industrialising Economies and includes Hong Kong, Singapore, Korea, and Taiwan.
36. In the case of AGOA, this desire to minimise cost by restricting the African operations to their most economically justifiable activities will undoubtedly explain why countries like South Africa and Muaritius that are not exempted from the apparel cummulation provisions failed to attract as much fdi as their LDCs regional neighbours who qualify for such benefits.
37. The words firm, establishment and plant are used interchangeably.
38. This is exactly what the Nien Hsing group (a garment producer with about three subsidiaries in Lesotho), did when it opened a denim fabric plant: The Formosa Textile Mill. This company produces denim fabric, which is a material input for garment manufacturing and supplies most of its output to the three plants that belong to the group.
39. To verify the consistency of this specification alternative banding for the dependent variable was considered and affirmative confirmation was made in results not reported here.
40. Conventionally, p values of less than 0.05 indicate significance. But if one could tell a priori the sign of a variable’s coefficient and the estimated result turns up with the expected sign then p-value should be halved (Daykin and Moffat, 2002). In the case of asgt and age variables in Model 2 that the exercise predicted and confirmed negative and positive values for their respective outcomes, halving their p values gives statistically significant results.