A STUDY OF THE REVEALED COMPARATIVE ADVANTAGE IN THETEXTILE AND CLOTHINGINDUSTRIESBETWEENIRAN ANDTURKEY

• Main Authors: Dr. Ahmad Assadzadeh, Dr. Davood Behbudi, Neda Faghani Miyarkolaie, HamidMahmoudi Moghadam
• Format: Article
• Language: English
• Published: Social Sciences Research Society 2013-07-01
• Series: International Journal of Economics and Finance Studies
• Online Access: http://www.sobiad.org/eJOURNALS/journal_IJEF/archieves/2013_2/Ahmad_Assad_abdolreza.pdf

The paperinvestigatesrevealedcomparativeadvantage(RCA)andtrademapindex(TM) for thetextileand clothing industriesbetweenIran and Turkeyduring2001-2009.The resultsof theRCAindicatedthat,Iranrecordeda relatively weakcomparative advantage inthe export of textile industryand no comparativeadvantage in the clothing industry for a short period from 2001 to 2003,whileTurkeyrecorded a strong comparative advantage inbothtextile and clothingindustriesduringthe whole period.Given the fact that the two counties areneighbors and both have access to each other’s markets makes us conclude thatIranian textile and clothing industries will be the net loser. Estimating TMindexillustrated thatinbothtextileandclothing industriesthe world market have beendeclining. Based on the TM index, while Iran has been a loser, in contrast,Turkeyhas been a winner in bothindustries. Thus, Iran needs better comprehension of theworld market and requires taking necessary steps through marketing, adoption ofnew technology and quality improvement in order to assert its place in the worldmarket of the textile and clothing industry.