Textile and Apparel Industries

Can there be a "Next China"? Comparative Advantage Analysis of Top Apparel Exporters

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Abstract

Despite China's dominance in global apparel exports, recent trade disputes and rising costs have led to a decline in apparel exports. Simultaneously, certain Asian and European countries, global apparel exports are increasing. This study explores the competitiveness of top apparel-exporting nations competing with China, using Revealed Comparative Advantage (RCA) and its variant, Normalized Revealed Comparative Advantage (NRCA). The analysis employs two-, four-, and six-digit Harmonized System codes (HS codes) spanning the period from 2016 to 2021. The findings indicate that China maintains a substantial comparative advantage in the majority of product categories within knitted or non-knitted apparel and clothing accessories. While some competing nations exhibit better export competitiveness in specific categories, this alone does not position them as the "Next China." The research offers significant implications for stakeholders in the apparel industry, including governments, policymakers, investors, and researchers, despite the limitations of UN trade data and the chosen measuring tools.

Keywords: RCA, NRCA, Apparel Business, Export Competitiveness, Trade

How to Cite:

Das, S., Hasan, M. & Das, D., (2024) “Can there be a "Next China"? Comparative Advantage Analysis of Top Apparel Exporters”, International Textile and Apparel Association Annual Conference Proceedings 80(1). doi: https://doi.org/10.31274/itaa.17433