Garment manufacturing in Laos: clustering and technological capabilities

Abstract

This study examines the impact of systemic pillars on technological capabilities in garment manufacturing in Laos. The evidence shows that garment manufacturing employment rose strongly over the period 2000–2006 but has been confined to low value added activities because of low technological capabilities. While acknowledging the importance of employment creation, this work argues that the systemic pillars in Laos must be strengthened for firms to introduce superior technological capabilities to sustain their competitiveness.

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