Export competitiveness and industrial development: a study of an apparel value chain in a small island developing state

Abstract

This paper examines how the implementation of vertical policies for apparel value chains in small island developing states (SIDS) impacts export competitiveness. A causal loop diagram was the basis of the preliminary conceptual framework, which was studied in a single case study of the Trinidad and Tobago apparel industry. The framework comprised three key elements: factors that affect competitiveness, vertical policy instruments and the beneficiaries of these policies. Six vertical policies implemented over a ten-year period were considered. The findings show that, while the vertical policies implemented are in keeping with prescribed instruments, export competitiveness has declined. The policy implications include the need for an overarching objective informing policies; the need for coherent policy making that considers the beneficiaries and the required skill-set, and the critical inputs by value chain actors, private sector and public sector to increase export competitiveness by way of GVC participation and GVC upgrading.