THE TEXTILE INDUSTRY TRADE COMPETITIVENESS OF SELECTED EUROPEAN TRANSITION COUNTRIES

Abstract

The paper analyses the textile industry trade competitiveness of nine European transition economies (Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, North Macedonia, Romania, Serbia and Slovenia), in parts and in its entirety, by using the following indicators: Revealed comparative advantage (RCA), Competitiveness growth index (RCA1), Index of net business performance (RCA2), and Michaely index (MI). The analysis focuses on the period between 1995 and 2018. The results of the analysis show that the textile industry of Northern Macedonia is internationally competitive, and that most countries have revealed comparative advantages. The textile industry contributed to the surplus in trade balance in North Macedonia, Bulgaria and Romania, while North Macedonia, Romania, Bulgaria, Croatia, Bosnia and Herzegovina and Serbia achieved some level of production specialisation. It was also confirmed that these countries had statistically different levels of trade competitiveness. The top level of production finalisation accounted for the greatest average value of competitiveness indicators.