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Location Advantages and Disadvantages in Myanmar: The Case of Garment Industry

Author

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  • KUDO,Toshihiro

Abstract

This research examines location advantages and disadvantages in Myanmar. The most notable location advantage of Myanmar is its abundant and low-wage labor. However, garment firms relocated here often suffer from difficulties such as electricity shortages, expensive and less available transport services, poor telephone, fax, and internet accesses, and cumbersome and time consuming administrative procedures. The wage gap between Myanmar and neighboring countries (including Thailand and China) does not attract garment firms to Myanmar but does lure Myanmar workers to its neighbors. In order to attract more garment firms to Myanmar, the government must enhance location advantages and alleviate disadvantages. While the country can do little to manipulate wages, it can reduce set-up, operation, and service link production costs through public policy and investment. A major priority for increasing the attractiveness of Myanmar is development of its infrastructure, especially the electricity supply. Further, institutional service link costs can be reduced by streamlining administrative procedures and establishing good governance. Such an improved business and investment climate will make it possible for the garment industry in Myanmar to compete in the global market.

Suggested Citation

  • KUDO,Toshihiro, 2009. "Location Advantages and Disadvantages in Myanmar: The Case of Garment Industry," IDE Discussion Papers 203, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  • Handle: RePEc:jet:dpaper:dpaper203
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    File URL: https://ir.ide.go.jp/record/2001237/files/IDP000203_001.pdf
    File Function: First version, 2009
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    References listed on IDEAS

    as
    1. Ota, Hitoshi, 2008. "Indian IT software engineers in Japan : a preliminary analysis," IDE Discussion Papers 168, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    2. Hazama, Yasushi, 2008. "The Political Economy of Growth: A Review," IDE Discussion Papers 141, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Kawanaka, Takeshi, 2008. "Political conditions for fair elections," IDE Discussion Papers 181, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    4. Cordeiro, Jose Luis, 2008. "Constitutions around the world : A View from Latin America," IDE Discussion Papers 164, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Myanmar (Burma)|garment industry|location advantage|location|disadvantage|cost-benefit analysis|production network|competitiveness|set-up cost|operation cost|service link cost|infrastructure;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment

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