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ANALYZING COMPARATIVE ADVANTAGE AND COMPETITIVENESS: THE CASE OF ROMANIAN TEXTILE AND CLOTHING INDUSTRY

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Author(s): Simona Tripa | Sunhilde Cuc

Journal: Annals of the University of Oradea. Fascicle of Textiles, Leatherwork
ISSN 1843-813X

Volume: XIV;
Issue: 2;
Start page: 26;
Date: 2013;
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Keywords: Romanian textile and clothing industry | market | comparative advantage | competitiveness | national competitiveness

ABSTRACT
Given the importance of Romanian textile industry in the Romanian and European market, this study examines data on textile and clothing sector. The paper estimates the comparative and competitive advantage of the textile and clothing industry using different indicators to measure it. We used the Revealed Comparative Advantage Index (RCA) and Revealed Competitive Advantage Index (CA) as two objects to study the international competitiveness of Romanian textile trade. The analysis is based on the annual time series data on textile and clothing exports and imports, obtained from the World Trade Organization (WTO) Total Merchandise Trade over the period 1990 to 2011. This period was selected as being long enough to permit longer-term trends to be identified, and based on the availability of a complete data set for both of the product groups – textile and clothing. We found out that Romania still has a comparative advantage industry in the world market their clothing but that advantage is dwindling in recent years - since 2002. Regarding the textile industry is a slight diminishing of competitive disadvantage decrease mainly on export growth (especially in textile and nonwoven fabrics impregnated) and the reduce Romania's textile imports in recent years. This reduction of Romania's textile imports was driven mainly by lower apparel exports in recent years - knowing that in Romania most of the production of clothing is made in the tallies.
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