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Broken Chain? AGOA and Foreign Direct Investment in the Kenyan Clothing Industry

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  • Phelps, Nicholas A.
  • Stillwell, John C.H.
  • Wanjiru, Roseline

Abstract

Summary Drawing upon survey and interview research covering 23 of an estimated total of 35 clothing manufacturing establishments operating in Kenya as well as interviews with the policy community, this paper examines the local economic development impacts associated with the recent AGOA-prompted re-birth of the clothing industry in Kenya just after its recent high watermark in 2003. It provides evidence of the characteristics of these manufacturing establishments as well as evidence of the multiple and interconnected failures on the part of Government, parent companies, agents, and customers to promote the longer-term sustainability of the industry. As such, it provides further case study evidence of Africa's uniquely problematic incorporation into global commodity chains.

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  • Phelps, Nicholas A. & Stillwell, John C.H. & Wanjiru, Roseline, 2009. "Broken Chain? AGOA and Foreign Direct Investment in the Kenyan Clothing Industry," World Development, Elsevier, vol. 37(2), pages 314-325, February.
  • Handle: RePEc:eee:wdevel:v:37:y:2009:i:2:p:314-325
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    Cited by:

    1. Staritz, Cornelia, 2012. "Apparel exports - still a path for industrial development? Dynamics in apparel global value chains and implications for low-income countries," Working Papers 34, Austrian Foundation for Development Research (ÖFSE).
    2. Azmeh, Shamel, 2015. "Transient global value chains and preferential trade agreements: rules of origin in US trade agreements with Jordan and Egypt," LSE Research Online Documents on Economics 64601, London School of Economics and Political Science, LSE Library.
    3. Rotunno, Lorenzo & Vézina, Pierre-Louis & Wang, Zheng, 2013. "The rise and fall of (Chinese) African apparel exports," Journal of Development Economics, Elsevier, vol. 105(C), pages 152-163.
    4. Yifei Sun & Debin Du, 2011. "Domestic Firm Innovation and Networking with Foreign Firms in China's ICT Industry," Environment and Planning A, , vol. 43(4), pages 786-809, April.
    5. Cornelia Staritz, 2011. "Making the Cut? Low-Income Countries and the Global Clothing Value Chain in a Post-Quota and Post-Crisis World," World Bank Publications - Books, The World Bank Group, number 2547.
    6. Staritz, Cornelia & Morris, Mike, 2012. "Local embeddedness, upgrading, and skill development: Global value chains and foreign direct investment in Lesotho's apparel industry," Working Papers 32, Austrian Foundation for Development Research (ÖFSE).
    7. Tanaka, Kiyoyasu & Fukunishi, Takahiro, 2022. "Rules of origin and exports in developing economies: The case of garment products," Journal of Asian Economics, Elsevier, vol. 82(C).
    8. Seth Schindler & Jonathan Silver, 2019. "Florida in the Global South: How Eurocentrism Obscures Global Urban Challenges—and What We Can Do about It," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 43(4), pages 794-805, July.
    9. Liu, Zhigao & Schindler, Seth & Liu, Weidong, 2020. "Demystifying Chinese overseas investment in infrastructure: Port development, the Belt and Road Initiative and regional development," Journal of Transport Geography, Elsevier, vol. 87(C).
    10. Morris, Mike & Staritz, Cornelia, 2014. "Industrialization Trajectories in Madagascar’s Export Apparel Industry: Ownership, Embeddedness, Markets, and Upgrading," World Development, Elsevier, vol. 56(C), pages 243-257.
    11. Rotunno, Lorenzo & Vézina, Pierre-Louis & Wang, Zheng, 2013. "The rise and fall of (Chinese) African apparel exports," Journal of Development Economics, Elsevier, vol. 105(C), pages 152-163.

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