Globalization of industrialization and its impact on clothing workers in Myanmar

Abstract

This article examines the impact of foreign capital inflows and export expansion on employment and wages in the clothing industry in Myanmar. Although economic sanctions since 2003 by the United States affected foreign capital inflows, the evidence shows that clothing exports have steadily recovered since 2005. While wages in the industry are still low, they have improved over the period 2006–2012. Foreign firms showed higher mean wages, export-intensity and technological capabilities than national firms. The statistical results show that foreign equity has a positive impact on export-intensity and technological capabilities. Also, wages and employment were positively linked to export-intensity and technological capabilities. Hence, despite the exploitative nature of capitalist integration, the clothing industry shows that not only has wages and employment grown, the statistical results suggest that they will grow further.