Institute for Economics Research on Innovation, Faculty of Economics and Finance, Tshwane University of Technology, 159 Skinner Street, Pretoria 0001, South Africa; Institute for Economics Research on Innovation, Faculty of Economics and Finance, Tshwane University of Technology, 159 Skinner Street, Pretoria 0001, South Africa; Research Centre on Development and International Political Economy, Aalborg Universitet, Fibigerstrade 2, DK-9220 Aalborg 0, Denmark
Na-Allah, A., Institute for Economics Research on Innovation, Faculty of Economics and Finance, Tshwane University of Technology, 159 Skinner Street, Pretoria 0001, South Africa; Muchie, M., Institute for Economics Research on Innovation, Faculty of Economics and Finance, Tshwane University of Technology, 159 Skinner Street, Pretoria 0001, South Africa; Muchie, M., Research Centre on Development and International Political Economy, Aalborg Universitet, Fibigerstrade 2, DK-9220 Aalborg 0, Denmark
This paper argues that the emergent profile of China as a top global exporter of apparel input material is undermining the spill-over potentials of Asian direct investment in apparel production abroad. The experience of subSaharan Africa is presented as an illustration of this claim. Insights from the GVC literature are used to show that Asian investors in Lesotho’s apparel manufacturing business rely principally on China for their input supplies. As a result of this, the incidence of Asian entrepreneurship in the country’s apparel sector is revealed to be associated with significant negative impact on supplier linkage development. Measures to promote local supplier development as well as improve the quality of service deliveries in key infrastructural areas are put forward as interventions needed to encourage firms to look inward for their supply needs. © 2010 Inderscience Enterprises Ltd.
