The Economic Analysis of Comparative Advantage and Competitiveness in the Textile Export Industry in Pakistan

Abstract

The present study aims at measuring the export competitiveness of the textile sector of Pakistan in the global market by employing several indices of Revealed Comparative Advantage. The data on textile exports of Pakistan have been taken from the international trade center (ITC) UN-Comtrade statistics from 2003-2018. The findings of the analysis exemplify that Pakistan’s textile exports had a comparative and competitive advantage. Pakistan is the net exporter of textile products and it has also a comparative advantage in the imports. Besides, the results of the Revealed Trade Advantage index demonstrate that Pakistan had a net comparative advantage in the concerned sector. The study suggests that Pakistan should emphasize on the diversification of the products, improving its supply chain, searching new markets for selling products and use of modern technology to increase the trade volume of textile products.