The Impact of Political Instability on the Textile Industry in Haiti

• Main Authors: Shelove Simeon, 施洛芙
• Other Authors: Dr.Rolando J.N.Chang
• Format: Others
• Language: en_US
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/99629998354616789121

碩士 === 銘傳大學 === 國際事務研究所碩士班 === 101 === The importance attached to the textile industry emerged from the key role it has played in the initial industrialization process in most countries. However, the potential of the textile industry to contribute to the long-run growth and development of the country will depend not only on the attributes of investors, but also on the quality and effectiveness of government policies and institutions in the country. Being identified as one of the main factors that have contributed to slowing down growth, the political climate in Haiti has always brought concerned. This study aimed at evaluating the impact of political instability on the sector through a quantitative methodology using a Solow framework, starting point of almost all the growth analysis, for the period of time covering 1990 to 2011. This has very important managerial implication considering that despite many opportunities that are offered to the sector including many trade agreements; it still faces some considerable challenges. In the empirical analysis, we found that as proposed in the literature review, political instability has negative impact on the sector accounting for about 0.54% growth reduction for an increase of 1% on the instability level. In addition, we found that other factors might also play an important role in the development process of the industry. Factors such as an undeveloped supply chain, a relatively unsafe environment and insufficient benefit policies to attract investor are among others. Therefore, the prospect of the industry was considered to be profitable only on the short run as other sectors were on the spotlight. Those sectors are the tourism sector and the agro-business sector. The importance of this study is to help take necessary action in other to take advantage of many opportunities that have been offered and to strengthen the ability and capability of the Haitian textile industry.