纺织品行业及贸易外文文献翻译资料Word格式.docx
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作者:
Altaf,Saba
期刊名称:
JournalofEconomicCooperation&
Development;
卷:
35;
期:
4;
页:
113-133;
年份:
2014
RevealedComparativeAdvantageofCarpetsandTextileFloorCoveringIndustryinPakistan,IndiaandChina
1.Introduction
Theglobaltradepatternhasbeenchangedinthepursuanceoftradeliberalizationpoliciesintheformofremovaloftariffandnon-tariffbarriers,reductioninquotasandtechnologicaladvancementonthepartofworldeconomies.SouthAsianeconomiessuchasChinaandIndiaareseekingafavorablepositionfromthetradecompositionperspectiveintheinternationalmarkets.Thesecountriespossesscomparativeadvantageintextilesectorandshowanoteworthygrowthinchangingtradepatternsacrosstheworld.Pakistanhasagreatpotentialtostandoutinthissectorintheregionasaprospectiveandoverwhelmingproportionoflaborforceisengagedinthissector.Itisexpectedthatexport-ledgrowthstrategycauseasignificantboostinproduction,employmentandtheproductivityoflaboralongwiththeimprovementsinoveralleconomicstatusbutthepoliticalandsocio-economicconditionsinadditiontoprimitivetypesoftechnologyusemayhinderthewaytorapidprogress.
Pakistan'
scurrentexportstructurerequiresstructuraltransformationandchangesinitsexportdiversificationandprototypespecialization.TheindustrialsectorinPakistanhasbeenplayingapivotalroleinthenationaleconomyintermsofitsshareinGDP,exports,employment,foreignexchangeearnings,investmentanditscontributiontothevalueaddedindustry.Chinaisoneoftheworld'
slargesttextilesexporters,accountingforonethirdoftheglobaltextiletradevolume.Althoughtheprolongedanti-dumpinginvestigationshitthecountry'
stextileexport,stilltextileindustryinChinahasremainedakeypillarofdevelopmentinthecountry.Ithasplayedavitalroleinproliferationofvarioussectorsoftheeconomy.Duetoitslargecontributionintheeconomicgrowth,Chinesegovernmenthasremainedverymuchfocusedtoupgradethissector.India,anothermajorexporteroftextilegoodsisself-reliantandindependentwithlotsofversatilityanddiversificationintextilesector.Apartfromprovidingoneofthebasicnecessitiesoflifei.e.cloth,thetextileindustrycontributesabout14%tothecountry'
sindustrialoutputandabout17%toexportearnings.Thissectorstandsatsecondintheprovisionofjobstopeopleafteragriculturalsector.
ThereiscontinuingdebateandemergingconcernaboutthepositionofthesecountriesintheworldmarketandtheresultingedgeofChinaforintensifiedcompetitioninthelabor-intensivemanufacturedgoods.Thissignifiestheimportanceofthestructureofcomparativeadvantageinselectedcountries;
China,IndiaandPakistanandtofindouttheextentofcompetitionamongthesecountriesinthemarketofselectedsubsectori.e.,textile.
Thisstudyfocusesononeoftheimportantsub-sectoroftextileindustryi.e.CarpetsandothertextilefloorCoverings(underthecategoryofcode57asperHarmonizedSystemofclassification,HS).ThecarpetindustryplaysafundamentalroleindeterminingtheexportbearingofPakistan.TherehasbeenaneverincreasingdemandforcarpetsandfloorcoveringsbothinPakistanandaroundtheglobe.Carpetshavealwaysbeenavaluableassetsinceagesandthereforeremainedinvogue.ThiswasgraduallycommercializedinPakistanbecauseofthedevelopmentofexportmarket.Commercializationgavenewdimensionstothisindustryanditstartedexpandinginruralareasduetotheavailabilityofcheaplabor.Thisisoneofthesectorsthatgrewtremendouslyduring1970sand80s.Amongthevalueaddedgoodsitremainedonthetopofthelist(AwanandKhan,1992).
Thissectorstartedgettingasetbackaftertheissueofchildlaborraisedbyinternationalorganizations.AsmajorityofthecarpetweaversinPakistanwereestimatedtobechildrenlessthan15yearsofage.Although,dataonthePakistanlaborforceandchildlaborisvulnerable.Nevertheless,thereislittledoubtthatchildlaborhasassumedmassiveproportionsinPakistan.TheactualtotalnumberofworkingchildreninPakistanisprobablysomewherebetween2and19million.2
Primarily,thepromotionofcarpetindustrydependsuponavailabilityofrawmaterial,presenceofskilledweaversandthetraditionofweavingart,etc.Theskillandproductivityofworkersincarpetindustryalongwiththeavailabilityofsocio-economicinfrastructureaffectsthecompetitivenessofthissector.Despitethepresenceofweaknessesinfewareas,thecarpetindustryservesasabackbonefortheeconomyofPakistan.Ithasbeenamajorsourceofforeignexchangeearningsandcontributesalotinreliefofpoverty,especiallyinruralareas.Presentlythisindustryisnotrevealingasignificantexportgrowthandthereisadireneedtofocusontheprovisionofinfrastructuretosupportthegrowthofthisindustry.
AUNICEF-Punjabreport(1992)assertedthat"
accordingtoconservativeestimates,onemillionoutof1.5millionworkersinthecarpetindustryinPakistanwerechildren.Aseparate1992UNICEF/GovemmentofPakistanstudyreportedthat90percentoftheonemillionworkersinthecarpetindustryarechildren,manyofwhombeganworkingintheindustrybefore10yearsofage.TheHumanRightsCommissionofPakistanfoundthatweavingthrivesinself-containedhomesteads,wherelaborischeapandreadilyavailable"
.
Differenttechniqueshavebeenusedinliteraturetodeterminecountry'
scompetitivenessinselectedindustry.OneofthemostwidelyusedmethodsinvolvestheconceptofRevealedComparativeAdvantage(RCA)developedbyBalassa(1965).Revealedcomparativeadvantage(RCA),ameasureofinternationalcompetitivenessspecifiesthatacountryisdefinedasbeingspecializedinexportsofacertainproductifitsmarketshareinthatproductishigherthantheaverage.
AnumberofstudiesareavailableonmeasuringcompetitivenessinvarioussectorsofPakistan,butthereisnoempiricalworkdoneonRCAofPakistanincarpetandothertextilefloorcoveringsindustrytilltheyearofthisstudyconducted.Forsmallaswellasgrowingeconomies,competitivenessisessentialforpromotingeconomicdevelopmentandtosurviveintheglobalizedworldwherecarpetindustryholdsitsownworth.
Fromtheabovegivenperspective,theobjectiveofthisstudyistoanalyzethecomparativeadvantageofthecarpetindustryinPakistanandcompareitwithselectedSouthAsiancountries.i.e.ChinaandIndia.ThesecountrieswereselectedformeasuringandcomparingRCAwithPakistan'
sbecausetheyaresimilarinsizeandfactorendowmentsandcorecompetitorofPakistanintheworldmarket.ThestudyenablesustofindoutthecompetitivenessofthissectorintheworldmarketandcanprobeatthefuturepotentialofgrowthinthecarpetindustryofPakistan.TheBalassaIndex(1965)isusedtofindoutthecomparativeadvantageat2-digitand4-digitlevelofHarmonizedSystemofClassification.
Therestofthepaperisorganizedasfollows.Nextsectionprovidestheliteraturesurveyfollowedbythemethodologyanddatadescription.Theempiricalresultsofthestudyarereportedanddiscussedinsection4.Lastsectionconcludesthestudywithsomepolicyrecommendations.
2.ReviewofLiterature
AnumberofstudieshavebeenconductedtofindoutRevealedComparativeAdvantage(RCA)usingBalassaIndex(1965).ThissectionprovidesabriefliteraturereviewthatcangiveabetterknowledgeandunderstandingofthepatternofRCAindifferentcountriesfordifferentsectors.
Balassa(1977)hasundertakenananalysisofthepatternofcomparativeadvantageofindustrialcountriesfortheperiod1953to1971.TheempiricalfindingsofthisstudysuggestarenewaloftheproductcycleforUSthatpossessaneverincreasingtechnicallead.BasedonthestandarddeviationoftheRCAindicesfordifferentcountriesanassociationisalsoseentoholdbetweensizeanddiversificationofexports.Furthermore,Balassa'
sresultsshowthattheextentofexportdiversificationtendstoincreasewiththedegreeoftechnologicaldevelopmentandareversaltakesplaceathigherlevelsinthetradepatterns.
Leishmanetal.(1999)empiricallyanalyzedtheinternationalcompetitivenessforagriculturalcommoditiesbyapplyingRevealedComparativeAdvantage(RCA)forwool-exportingcountries.AnumberofsixwoolproducingcountriesareselectedformeasuringRCAoverthetimeperiodof37years.RCAindexforAustralia,Argentina,Newzeland,SouthAfrica,UnitedKingdomandUruguayindicatesthatGATTUruguayRoundhaschangedtheRCA'
sofcountriessignificantly.
Mehmood(2005)analyzedtheexportspecializationandcomparativeadvantage/disadvantageofPakistan'
snonagricultureproductionsectorsinthecontextofon-goingmultilateraltradenegotiations.ThestudyusesRCAapproachatHS-4digitlevelfortheperiod1990-2000.ThedatasethasbeendrawnfromInternationalTradeStatisticscompiledbytheAustralianNationalUniversity(AND).Thedatasetcomprises16productcategoriesmadeupof978productlines.FindingsshowthatPakistan'
stop-rankingexportsbelongtotextilesandclothingsector,consistentwiththenaturalandhumanfactorendowmentshoweverPakistanhasfailedtomovefromlowvalueaddedtotechnicallyintensivehighvalueaddedmanufacturing.Pakistan'
seconomicwell-beingdependsontheextenttowhichthenon-agriculturalsectorremainscompetitiveandcontributestoeconomicgrowth,exports,investmentandemployment.
BatraandKhan(2005)examinedthestructureofco