Abstract:

The aim of this paper is to examine Turkey’s comparative advantage and international competitiveness of textiles and clothing industries as a whole and of all sub-sectors of these industries. The analysis is based on Balassa’s (1965) revealed comparative advantage (RCA) index and Vollrath’s (1991) competitiveness indices. The analysis based on Balassa’s indices shows that Turkey has a strong comparative advantage in textiles and clothing as aggregate commodity groups and in sub-categories of textile and clothing. In aggregate commodity groups of textiles and clothing, the analysis based on Vollrath’s indices shows that Turkey is less competitive in the world market compared to Balassa’s indices. On the other hand, both RCA and relative trade and export advantage indices show that SITC 84 (Articles of Apparel and Clothing Accessories) commodity group is more competitive than SITC 65 (Textiles Yarn, Fabrics, Made-up Articles and Related Products) in the world markets. However, the competitiveness of almost all sub-sectors falls recently. In order not to lose the competitiveness of Turkish textile and apparel industries in European Union and world markets, it is essential to focus on technological developments and research and development (R&D).

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