Appropriate reactions to globalisation? Interest group theory and trade associations in clothing between 1970 and 2000 -- a comparison between Denmark and Sweden

Today both Denmark and Sweden are successful fashion exporters due to the re-export of clothing designed in Scandinavia and produced in low-wage countries, while domestic clothing manufacturing has become almost non-existent over the past 20 years. This article compares the strategies of Danish and Swedish trade associations in clothing manufacturing and discusses whether or not the associations encouraged the abandonment of local manufacturing and adoption of global value chains. The analysis is carried out on the basis of interest group theory as developed by Mancur Olson and others, and the findings confirm that interest group influence can entail long-term negative effects, but also that variations in institutional settings are decisive.