ABSTRACT
The garment industry is one of the many labor-intensive sectors that provide an entry for developing countries to engage with the global market. It offers important opportunities for countries to start industrializing their economies and in the course of time diversify away from commodity dependence. Some 40 years ago the industrialized countries dominated global exports in this segment, and at present the developing countries produce half of the world's textile exports. Moreover, the economic performance of the apparel and textiles industry in developing countries has large impacts on employment opportunities, especially for women, the development of SMEs and spillovers into the informal sector (UNCTAD 2005). Textile production involves relatively more capital-intensive processes compared to those in producing apparel and hence developing countries account for a smaller share in textile output but a larger share in the labor-intensive production of garments.
