Dynamics of Comparative Advantage and Competitiveness of Textile and Apparel Industry: An Empirical Analysis for China and Bangladesh
Journal Title: Journal of Economics, Management and Trade - Year 2017, Vol 16, Issue 1
Abstract
Aims: The purpose of this paper is to analyze the level of comparative advantage and competitiveness of Textile and Apparel (T&A) industry of Bangladesh and China in the global market. It also tries to link the competitiveness analysis with the trade theories of comparative advantage to synthesize different approaches of competitiveness recommending with policy implications. Place and Duration of Study: We used the two digit classification of Harmonized System (HS) data of 14 main products of Textile and Apparel industry of Bangladesh and China over the period from 2000 to 2015. Methodology: The proposed approach is based on the Balassa revealed comparative advantage (RCA) and Spearman Rank Correlation coefficient (rs) to examine the comparative advantage and competitiveness respectively for 14 main products of Textile and Apparel industry of Bangladesh and China. For calculation of RCA values, the export data have been taken from UN COMTRADE, an electronic database of the United Nations. To calculate the trends of trade between the two nations and individual industries, we used the database of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), database of International Trade Center (ITC), and the World Trade Organization (WTO) database. Results: The findings show that during this 16 years period, among the 14 products; Bangladesh improved her comparative advantage over 7 products, lowered over 5 products and remained quite unchanged over 2 products whereas China improved her comparative advantage over 8 products lowered over 2 products and remained quite unchanged over 4 products. According to the Competitiveness analysis of the 14 products; 3 products exhibit higher competition, 6 products exhibit modest competition and 5 products exhibit complementary between Bangladesh and China in global market. As a result, policy implications were discussed in this paper. Conclusion: In this paper revealed comparative advantage has been analyzed at the two digit level of HS classification for both Bangladesh and China. The implications reveal that the three main stakeholders of T&A; the government, manufacturers, and buyers must work together to realize the potential of textile and apparel market for both Bangladesh and China. It is suggested for both countries to improve the industrial competitive advantage through human resource exploitation strategy and innovation in science and technology. Improving product and market diversification and reducing the lead time also suggested for improving the competitiveness of Bangladesh’s T&A industry.
Authors and Affiliations
Md. Ekram Hossain, Huang Dechun, Changzheng Zhang, Vu Thi Van
Keywords
Related Articles
- EP ID EP319914
- DOI 10.9734/BJEMT/2017/30840
- Views 98
- Downloads 0
Modelling the Impact of Oil Price Volatility on Investment Decision Making in Marginal Fields’ Development in Nigeria
This study investigated the impact of oil price volatility on investment decision making in Marginal fields’ development in Nigeria. The study also investigated the relationship between oil price volatility and marginal...
Prepotency of Nigerian Securities and Exchange Commission Code of Corporate Governance among Public Companies
This study empirically examined the prepotency (i.e. superiority at the level of importance) of the regulatory provisions of the Securities and Exchange Commission’s (SEC) Code of Corporate Governance (CCG) for public co...
Small Scale Enterprises in Nigeria: Towards Its Sustainability
Small Scale Enterprises (SSEs) remained veritable tool to overcome the scourge of poverty in the developing nations of the world. In this line, the study investigated the role of government in sustaining the sector. A sa...
Treasury Single Accounting (TSA) and Public Sector Accountability in Nigeria
The study ascertained effect of treasury single account and accountability in the Nigeria Public Sector. Two specific objectives guided the study, while two research questions was raised and two hypotheses were formulate...
Probabilistic Estimation of Potential Gas Reserves for the Emerging Nigerian Gas Market
Proved reserves for the Emerging Nigerian Gas Market is estimated to be around 186 trillion cubic feet (Tcf). In the short to medium term, only 54% or approximately 100 Tcf will be available for utilisation, the remainin...