COMPARATIVE ADVANTAGE ANALYSIS OF TEXTILES AND TEXTILE PRODUCTS USING PRODUCT MAPPING TOOLS

• Main Author: Gin Agus Ginanjar, Gin
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/52179
• Institution: Institut Teknologi Bandung

The purpose of this research is to map the comparative advantage of Indonesian textiles and textile products (TPT) using “Product Mapping Tools” (a combination of Revealed Symmetric Comparative Advantage [RSCA] and Trade Balance Index [TBI]), which classify products and countries into four quadrants. The first quadrant is countries whose products have a comparative advantage and are net exporters. The second quadrant is countries whose products have a comparative advantage, but these countries are net importers. The third quadrant is countries that do not have a comparative advantage but are net exporters. Lastly, countries that do not have a comparative advantage and are net importers. After being mapped, we compared the result with the comparative advantages of textile and textile products from competing countries in Asia (Japan, Hong Kong, South Korea, Taiwan, China, Thailand, India, Pakistan, Vietnam, Sri Lanka, Bangladesh, Myanmar, and Cambodia). In this research, we use direct and mirror export-import data and estimated CIF-FOB margin. The data were categorized according to the 4-digit of Harmonized System (HS) code and taken from UN Comtrade (United Nations Commodity Trade Statistics Database) for the period 1988-2018. The result shows that dynamic changes in TPT comparative advantage have occurred in Indonesia. Indonesia still has a comparative advantage in woven apparel, knitted apparel, woven fabric from man-made staple yarn, woven fabric from man -made filament yarn, natural spun yarn, man-made staple yarn, man-made filament yarn, and man-made staple fiber. Although Indonesia still has comparative advantage in apparel commodities and have a comparative advantage for textiles and fiber commodity (man-made fiber), but these two commodities (textile and fiber) have negative trade balance since the last few years. Indonesia does not have a comparative advantage in other textile article, knitted fabric, non-woven fabric, other textile fabric, natural fiber, and textile machinery. Indonesia has also lost its comparative advantage in woven fabrics from natural spun yarn since 2007.