Exporting out of China or out of Africa? Automation versus relocation in the global clothing industry
Altenburg, Tilman / Xiao Chen / Wilfried Lütkenhorst / Cornelia Staritz / Lindsay Whitfield (2020)
Discussion Paper 1/2020
China’s position as the biggest garment exporter is threatened by rising wages. This study shows that some production is indeed relocated to lower cost countries, but only a small fraction goes to Africa. In parallel, automation technology evolves, but is too expensive to radically substitute labour.