2011年-世界发展银行全球_Incentives_Exports_and_International_Competitiveness_in_Sub-Saharan_Africa___Lessons_from_the_Apparel_Industry_112页_2mb

Summary of "Incentives, Exports and International Competitiveness in Sub-Saharan Africa: Lessons from the Apparel Industry"

Core Content

This report examines the impact of the removal of bilateral quotas on apparel imports into the US and EU markets in 2005 and its effects on Sub-Saharan African (SSA) exporters. It explores the competitiveness of SSA apparel firms in a liberalized market and evaluates the effectiveness of trade preferences, such as AGOA and EBA, in supporting export performance. The study also investigates the role of global value chains (GVCs) and the importance of firm-level characteristics in determining export success.

Main Questions and Findings

1. How did SSA countries adjust in the post-quota period?

   • Between 2004 and 2008, most SSA countries lost market share in the US and EU, with only Egypt, Madagascar, and Morocco/Tunisia experiencing growth.
   • East Asian countries like Bangladesh, Vietnam, and Indonesia gained market share by competing with Chinese exporters.
   • SSA exporters could not match the price reductions of their competitors, leading to a significant decline in export volumes.
   • Madagascar and Lesotho managed to cope by expanding sales to third markets.

2. Can SSA firms compete in a post-quota world?

   • While SSA firms did not match the price competitiveness of East Asian counterparts, they showed similar cost structures to comparators in terms of labor and factory-floor costs.
   • However, higher transport, infrastructure, and logistics costs in SSA created a competitive disadvantage.
   • The study concludes that SSA firms can compete but require policy support to enhance their export capacity and diversify into other markets.

3. Negotiating trade agreements

   • Trade preferences under AGOA and EBA played a crucial role in enabling SSA firms to compete in the US and EU markets.
   • The rules of origin (ROO) under AGOA-SR allowed SSA firms to use third-country fabrics, providing a cost advantage.
   • The EU's rules of origin were more restrictive, requiring fabrics to be sourced from within the EU or the exporting country, making it harder for SSA firms to compete.

4. Creating export-ready firms

   • SSA firms are categorized into three types: global exporters, regional exporters, and non-exporters.
   • Global exporters are typically foreign-owned and integrated into GVCs, while regional exporters are owned by residents of more-developed neighboring countries.
   • Non-exporters are small and focused on niche products.
   • Government policies should encourage non-exporters to become regional exporters and improve infrastructure and logistics to support export competitiveness.

Key Insights

• Trade Preferences: AGOA and EBA provided a price advantage of 10–20% to SSA exporters, but this was not enough to offset the price reductions by East Asian competitors, especially China.
• Global Value Chains (GVCs): SSA firms are part of GVCs, but they face challenges in maintaining competitive positions due to higher logistics and transport costs.
• Diversification: SSA countries with a more diversified product range experienced less decline in export values. Countries like Madagascar and Kenya diversified more than others, such as Mauritius and South Africa.
• Incentives and Investment Climate: Host governments should provide incentives for geographical and product diversification to attract foreign investors and improve export performance.
• Regional Collaboration: Establishing a regional value-chain marketing association could help SSA firms secure a more stable market position.

Policy Recommendations

• Support Export-Ready Firms: Governments should focus on creating an enabling environment for local producers to become export-ready, including infrastructure development and logistics improvements.
• Encourage Diversification: Policies should promote diversification of both products and markets to reduce the risk of over-reliance on the US and EU.
• Maintain Trade Preferences: The continuation of trade preferences like AGOA and EBA is essential for SSA firms to remain competitive, especially in the absence of quota protection.
• Align with Global Standards: SSA countries should work towards aligning their rules of origin and trade policies with global standards to facilitate integration into GVCs.

Conclusion

The removal of quotas in 2005 created a significant challenge for SSA apparel exporters, but it is not a definitive indicator of their inability to compete. The report emphasizes the importance of policy interventions in enhancing export readiness, diversifying production and trade, and reducing logistics and transport costs. It also highlights the need for SSA countries to develop a more integrated and resilient position in global value chains.