Publication:
Export Led Growth, Pro-Poor or Not? Evidence from Madagascar's Textile and Apparel Industry

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dc.contributor.authorNicita, Alessandro
dc.date.accessioned2012-06-22T15:49:39Z
dc.date.available2012-06-22T15:49:39Z
dc.date.issued2006-02
dc.description.abstractMadagascar's textile and apparel industry has been among the fastest growing in Sub-Saharan Africa. Fueled by low labor costs, a fairly productive labor force, and preferential access to industrial countries, Madagascar's exports of textile and apparel products grew from about US$45 million in 1990 to almost half a billion in 2001. The impact of this export surge has been large in terms of employment and wages, but less so in terms of poverty reduction. To address the concern of whether the poor benefit and to what extent, the author follows a new approach to identify the beneficiaries of globalization and to quantify the benefits at the household level, so as to understand which segments of the population benefit most and which, if any, are marginalized. The analysis focuses on the labor market channel which has been recognized as the main transmission between economic growth and poverty. The methodology uses household level data and combines the wage premium literature with matching methods. The results point to a strong variation in the distribution of the benefits from export growth with skilled workers and urban areas benefiting most. From a poverty perspective, export-led growth in the textile and apparel sector has only a small effect on overall poverty. This study points to two reasons for this. First, a large majority of the poor are unable to enjoy the new employment opportunities, given their lack of skills sought by the expanding textile and apparel export industry. Second, most of the poor reside in rural areas where the employment effect is small. The results indicate that the effects of an increase in exports of textiles for poverty reduction are felt only in urban areas, mostly through job creation. Some of the urban poor are good candidates for finding employment in the expanding sector. But the urban poor are likely to find employment only in unskilled jobs. Given that unskilled wages are kept low by a large reserve labor sector, the gains are limited, and the overall impact on poverty is small. More generally, the results of this study suggest that two factors are required if export-led economic growth is to significantly reduce poverty. First, growth and job creation must not be restricted to a few geographic areas but need to reach areas where the majority of the poor live. Second, poor people must be assisted in obtaining the skills sought by expanding industries.en
dc.identifierhttp://documents.worldbank.org/curated/en/2006/02/6567895/export-led-growth-pro-poor-or-not-evidence-madagascars-textile-apparel-industry
dc.identifier.doi10.1596/1813-9450-3841
dc.identifier.urihttps://hdl.handle.net/10986/8788
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 3841
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectABSOLUTE TERMS
dc.subjectALTERNATIVE APPROACH
dc.subjectAVERAGE EARNING
dc.subjectAVERAGE INCOME
dc.subjectAVERAGE WAGE
dc.subjectAVERAGE WAGES
dc.subjectCOMMERCIAL AGRICULTURE
dc.subjectCOMPARABILITY PROBLEMS
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPARATIVE ADVANTAGES
dc.subjectCONSTRUCTION
dc.subjectCOST OF LIVING
dc.subjectDEPENDENT VARIABLE
dc.subjectDEVELOPED COUNTRIES
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT RESEARCH
dc.subjectDEVELOPMENT STRATEGY
dc.subjectEARNING
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC LITERATURE
dc.subjectECONOMIC SECTORS
dc.subjectECONOMIC STUDIES
dc.subjectEMPLOYMENT
dc.subjectEMPLOYMENT EFFECT
dc.subjectEMPLOYMENT GROWTH
dc.subjectEMPLOYMENT OPPORTUNITIES
dc.subjectESTIMATED COEFFICIENTS
dc.subjectESTIMATED PROBABILITIES
dc.subjectESTIMATION RESULTS
dc.subjectEXPORT GROWTH
dc.subjectEXPORT LED GROWTH
dc.subjectEXPORTS
dc.subjectFINDING EMPLOYMENT
dc.subjectFIRM LEVEL
dc.subjectGROWTH RATE
dc.subjectGROWTH RATES
dc.subjectHIGH EMPLOYMENT
dc.subjectHIGH GROWTH
dc.subjectHOUSEHOLD CHARACTERISTICS
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSEHOLD SURVEY
dc.subjectHOUSEHOLD SURVEYS
dc.subjectHOUSEHOLD WELFARE
dc.subjectINCREASING RETURNS
dc.subjectINDUSTRY WAGE
dc.subjectINFORMAL SECTOR
dc.subjectJOB CREATION
dc.subjectLABOR COSTS
dc.subjectLABOR DEMAND
dc.subjectLABOR ECONOMICS
dc.subjectLABOR FORCE
dc.subjectLABOR MARKET
dc.subjectLABOR MARKETS
dc.subjectLEAST DEVELOPED COUNTRIES
dc.subjectLIVING CONDITIONS
dc.subjectLOW INCOME
dc.subjectLOW INCOME COUNTRIES
dc.subjectMACROECONOMIC FRAMEWORK
dc.subjectMACROECONOMIC MODELS
dc.subjectMARGINAL PRODUCT
dc.subjectMARGINAL UTILITY
dc.subjectMARKET WAGES
dc.subjectMIDDLE EASTERN
dc.subjectMONOPSONY
dc.subjectMONOPSONY POWER
dc.subjectNET EXPORTS
dc.subjectPOLICY ISSUES
dc.subjectPOLICY RESEARCH
dc.subjectPOOR HOUSEHOLDS
dc.subjectPOOR INDIVIDUALS
dc.subjectPOOR PEOPLE
dc.subjectPOVERTY LEVELS
dc.subjectPOVERTY LINE
dc.subjectPOVERTY RATES
dc.subjectPOVERTY REDUCTION
dc.subjectPRO POOR
dc.subjectREAL WAGE
dc.subjectREAL WAGES
dc.subjectRURAL AREAS
dc.subjectSERVICE SECTOR
dc.subjectSKILLED LABOR
dc.subjectSKILLED WORKERS
dc.subjectSUB-SAHARAN AFRICA
dc.subjectTEMPORARY EMPLOYMENT
dc.subjectTEMPORARY WORKERS
dc.subjectTEXTILE INDUSTRY
dc.subjectTOTAL EMPLOYMENT
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE POLICIES
dc.subjectUNEMPLOYED
dc.subjectUNEQUAL DISTRIBUTION
dc.subjectUNSKILLED JOBS
dc.subjectUNSKILLED LABOR
dc.subjectUNSKILLED MEN
dc.subjectUNSKILLED WORKERS
dc.subjectURBAN AREAS
dc.subjectURBAN POOR
dc.subjectURBAN POVERTY
dc.subjectUTILITY FUNCTION
dc.subjectWAGE DIFFERENTIAL
dc.subjectWAGE DIFFERENTIALS
dc.subjectWAGE GROWTH
dc.subjectWAGE PREMIUM
dc.subjectWAGE PREMIUMS
dc.subjectWELFARE IMPACT
dc.subjectWORKER
dc.subjectWORLD ECONOMY
dc.subjectWTO
dc.titleExport Led Growth, Pro-Poor or Not? Evidence from Madagascar's Textile and Apparel Industryen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleExport Led Growth, Pro-Poor Or Not? Evidence From Madagascar's Textile And Apparel Industry
okr.date.doiregistration2025-04-10T09:25:14.762219Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2006/02/6567895/export-led-growth-pro-poor-or-not-evidence-madagascars-textile-apparel-industry
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeSocial Protection and Labor
okr.globalpracticePoverty
okr.globalpracticeWater
okr.guid438991468055157604
okr.identifier.doi10.1596/1813-9450-3841
okr.identifier.externaldocumentum000016406_20060131161444
okr.identifier.internaldocumentum6567895
okr.identifier.reportWPS3841
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/01/31/000016406_20060131161444/Rendered/PDF/wps3841.pdfen
okr.region.administrativeAfrica
okr.region.countryMadagascar
okr.topicPoverty Reduction::Achieving Shared Growth
okr.topicEconomic Theory and Research
okr.topicWater Resources::Water and Industry
okr.topicMacroeconomics and Economic Growth::Economic Conditions and Volatility
okr.topicSocial Protections and Labor::Labor Markets
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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