Export Performance of Textile and Apparel Products: A Comparative Study of Bangladesh and Malaysia
The textile and apparel industry provides the major source of foreign exchange earnings of Bangladesh and Malaysia. Impressive export growth and upward performance continuously turn the industry into a viable contributor to the national economy. The objectives of the study are: firstly, to examin...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English English |
| Published: |
2001
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/8148/1/GSM_2001_6_.pdf |
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| Summary: | The textile and apparel industry provides the major source of foreign
exchange earnings of Bangladesh and Malaysia. Impressive export growth and
upward performance continuously turn the industry into a viable contributor to the
national economy. The objectives of the study are: firstly, to examine the export
competitiveness of textile and apparel products of Bangladesh and Malaysia, using
economic indicators like Revealed Comparative Advantage (RCA) and Constant
Market Share (CMS) analysis. Secondly, to examine the potential export markets
using Shift-Share technique.
The RCA calculations clearly show an increasing strength of comparative
advantage to Bangladesh for the export of textile as well as apparel products. This is
mainly due to the negligible import for textile and apparel products. In the case of
Malaysia, the RCA calculations also show an increasing strength of comparative
advantage of export performance ratio for the export of textile and apparel products.
The net export/total trade ratio shows an increasing strength of RCA only for the apparel products, but for the export of textile products, the RCA is shown negative
ratio. This is mainly due to the excessive import of textile products.
The CMS results suggest that export gains of both countries for textile and
apparel products are largely attributed to the size of the market effect and also to
their competitiveness effect. Regarding the export growth of selected textile products
for both countries, the CMS results demonstrate that, in most cases, Malaysia shows
better competitive performance than that of Bangladesh. For commodity composition
and market distribution effects, Malaysia shows better performance in most of the
cases and has attained advantage in world trade for overall textile articles compared
to Bangladesh. In the case of apparel products, both countries show negative export
performance of commodity composition and market distribution effects. CMS
analysis depicts that the competitiveness effects of both countries for these apparel
products subsequently improved in general during the period 1 992- 1 996 as compared
to those for periods of 1 982-86 and 1 987-9 1 . During the period of the study,
Bangladesh registered on average better performance with regards to commodity
composition and market distribution effects for apparel products as compared to
Malaysia.
The results of shift share analysis indicate that market opportunities for the
export of textile and apparel products of Bangladesh are mainly offered by the USA,
Canada and EU countries. However, Asian countries have shown a negligible role in
this respect. On the other hand, USA, Canada and EU countries have also been
identified as potential markets for Malaysia for textile and apparel products. In
addition, the Asian region also offered better market opportunities to Malaysia. |
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