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Analysis of comparative advantage in the textile complex A study of Eastern European and former Soviet Union nations

Analysis of comparative advantage in the textile complex A study of Eastern European and former... Purpose – This paper aims to present an exploratory investigation into ten‐year (1995‐2004) patterns of trade specialization among Eastern European and former Soviet Union Nations, assessing patterns of comparative advantage across the textile machinery, man‐made fiber, textile, and apparel sectors of the textile complex to determine whether these conform with both trade specialization and industry evolution theories. Design/methodology/approach – A revealed symmetric comparative advantage index is employed to evaluate international competitiveness for 27 Eastern European and former Soviet Union Nations over a ten‐year period. Repeated measures ANOVA is used to determine the significance of the observed patterns across four income‐defined groups of nations. Findings – Overall, the pattern of export development and RSCA generally reflects expectations regarding factor proportions theory and industry evolution models. The RMANOVA partially confirms the observations. The analysis indicates that income group does not independently affect comparative advantage; however, the nature of products is the significant factor influencing national comparative advantage. Practical implications – The established models may be better at understanding those nations which have established relatively stable politic and economic environment, and been experiencing earlier stages of industry development, but appear less useful in predicting development patterns for those nations experiencing dramatic transitions from regulated to de‐regulated markets. Originality/value – The patterns of national comparative advantage in a vertical textile complex are identified for Eastern European and former Soviet Union Nations. The dynamics of change over a ten‐year period following economic reforms are revealed. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Fashion Marketing and Management Emerald Publishing

Analysis of comparative advantage in the textile complex A study of Eastern European and former Soviet Union nations

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References (39)

Publisher
Emerald Publishing
Copyright
Copyright © 2007 Emerald Group Publishing Limited. All rights reserved.
ISSN
1361-2026
DOI
10.1108/13612020710734427
Publisher site
See Article on Publisher Site

Abstract

Purpose – This paper aims to present an exploratory investigation into ten‐year (1995‐2004) patterns of trade specialization among Eastern European and former Soviet Union Nations, assessing patterns of comparative advantage across the textile machinery, man‐made fiber, textile, and apparel sectors of the textile complex to determine whether these conform with both trade specialization and industry evolution theories. Design/methodology/approach – A revealed symmetric comparative advantage index is employed to evaluate international competitiveness for 27 Eastern European and former Soviet Union Nations over a ten‐year period. Repeated measures ANOVA is used to determine the significance of the observed patterns across four income‐defined groups of nations. Findings – Overall, the pattern of export development and RSCA generally reflects expectations regarding factor proportions theory and industry evolution models. The RMANOVA partially confirms the observations. The analysis indicates that income group does not independently affect comparative advantage; however, the nature of products is the significant factor influencing national comparative advantage. Practical implications – The established models may be better at understanding those nations which have established relatively stable politic and economic environment, and been experiencing earlier stages of industry development, but appear less useful in predicting development patterns for those nations experiencing dramatic transitions from regulated to de‐regulated markets. Originality/value – The patterns of national comparative advantage in a vertical textile complex are identified for Eastern European and former Soviet Union Nations. The dynamics of change over a ten‐year period following economic reforms are revealed.

Journal

Journal of Fashion Marketing and Management – Emerald Publishing

Published: Mar 6, 2007

Keywords: International trade; Competitive advantage; Textile machinery and accessories; Man‐made fibres; Textiles; Clothing; Eastern Europe

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