Competitive Textile Exports: A Comparative Study of Pakistan and China in the United States of America Market

Komal Azhar, Tahira Sadaf, Ayesha Rouf, Muhammad Amjed Iqbal and Usman Azhar

Journal of Economic Impact, 2024, vol. 6, issue 2, 138-146

Abstract: The clothing and textile industry is crucial to Pakistan's economy, significantly contributing to GDP and employment. Pakistan, with its strong expertise in cotton manufacturing, faces intense competition from China in the lucrative United States market. This study aims to evaluate Pakistan's textile and clothing exports to the United States and analyze its competitive advantages against China. Utilizing two analytical techniques, the Trade Competitiveness Index and Revealed Comparative Advantage (RCA), this research assesses Pakistan's positioning in the US market relative to China. Secondary data from authoritative sources such as WITS and UN Comtrade, along with scholarly articles, serve as the basis for the analysis. The study focuses on three key textile divisions (SITC 26, SITC 65, and SITC 84) and examines their impact on US imports. Key findings indicate that while Pakistan has demonstrated growth in textile exports, particularly in textile fabrics (SITC 26) and clothing (SITC 84), it still lags behind China in overall export volume and market share. The RCA analysis reveals that Pakistan possesses a comparative advantage in specific textile categories, though China's market dominance remains unchallenged. The research identifies several challenges for Pakistan, including inefficient resource use, energy supply issues, high production costs, and outdated equipment. However, opportunities for improvement lie in enhancing quality standards, compliance with international trade requirements, and strategic policy enhancements. The study provides actionable recommendations to strengthen Pakistan’s competitiveness, such as modernizing production equipment, optimizing resource use, and exploring new markets. The findings of this study are crucial for policymakers, industry stakeholders, and businesses aiming to strengthen Pakistan's textile exports and navigate the highly competitive global textile landscape.

Keywords: Trade competitiveness index; Revealed comparative advantage; Textile exports; Sustainable development; US market (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:adx:journl:v:6:y:2024:i:2:p:138-146

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