Interviews
Textiles & clothing sector is very important for developing economies
16 Jun '10
6 min read
The 2008 global crisis led to a marked decline in demand from developed countries which represent a significant share in world imports of textiles and clothing products. The economic slowdown following the crisis also affected this sector which experienced negative growth of - 67 On the other hand, it could be argued that the introduction of these measures may be related to the existence of substantial overcapacity.
The large decrease in trade also had an impact on employment with a loss in jobs of approximately 20 per cent in developing countries. During the crisis the structural changes in the industry intensified. The consolidation of supply chains continued and made it more difficult for small firms to survive the crisis. Countries that increased their share of world exports after the abolition of import quotas were less hit by the crisis.
The trade restricting measures implemented in the textiles and clothing sector have been limited. Other measures such as trade finance and specific support to enterprises have also been used by some governments. To evaluate the economic impact of these specific measures, factors such as the magnitude of the measures, the relative importance in the economy of the targeted products, and the size of the country adopting them should be considered.
The textile and clothing industry is a large sector composed by a diversified range of activities requiring a different input-mix of labor and capital and hence located in different countries according to their relative resource endowments. The entire supply chain can be subdivided in four main production segments (the production of fibers; the treatment of raw materials; the transformation of fabrics into products such as clothes or apparel; and activities such as importing, distribution and retail).
It is not easy to separate the textile and clothing industries as, in most cases, the production processes are integrated and are sometimes situated in a single plant. One of the major differences, however, is that the clothing sector is generally more labour intensive than the textiles sector.68 The textiles industry is usually more capital intensive. It is highly automated and is mainly located in capital abundant developed economies. Generally, the textiles industry is less flexible in adjusting to consumer tastes than the clothing industry because the lead time needed and the capital intensity of the industry result in relatively large minimum orders.
The importance of the textiles and clothing sector in employment is significant in countries such as China, Hong Kong (China), India and Turkey, where employment in the sector represents more than 20 per cent of total manufacturing employment. In these countries, the value added generated by the textiles and clothing industry represents around 10 per cent of the total value added of manufacturing products. From the top OECD exporters, Italy and Belgium have a significant number of employees working in the textiles and clothing industry.
Click here to read more details on WTO reports:
The large decrease in trade also had an impact on employment with a loss in jobs of approximately 20 per cent in developing countries. During the crisis the structural changes in the industry intensified. The consolidation of supply chains continued and made it more difficult for small firms to survive the crisis. Countries that increased their share of world exports after the abolition of import quotas were less hit by the crisis.
The trade restricting measures implemented in the textiles and clothing sector have been limited. Other measures such as trade finance and specific support to enterprises have also been used by some governments. To evaluate the economic impact of these specific measures, factors such as the magnitude of the measures, the relative importance in the economy of the targeted products, and the size of the country adopting them should be considered.
The textile and clothing industry is a large sector composed by a diversified range of activities requiring a different input-mix of labor and capital and hence located in different countries according to their relative resource endowments. The entire supply chain can be subdivided in four main production segments (the production of fibers; the treatment of raw materials; the transformation of fabrics into products such as clothes or apparel; and activities such as importing, distribution and retail).
It is not easy to separate the textile and clothing industries as, in most cases, the production processes are integrated and are sometimes situated in a single plant. One of the major differences, however, is that the clothing sector is generally more labour intensive than the textiles sector.68 The textiles industry is usually more capital intensive. It is highly automated and is mainly located in capital abundant developed economies. Generally, the textiles industry is less flexible in adjusting to consumer tastes than the clothing industry because the lead time needed and the capital intensity of the industry result in relatively large minimum orders.
The importance of the textiles and clothing sector in employment is significant in countries such as China, Hong Kong (China), India and Turkey, where employment in the sector represents more than 20 per cent of total manufacturing employment. In these countries, the value added generated by the textiles and clothing industry represents around 10 per cent of the total value added of manufacturing products. From the top OECD exporters, Italy and Belgium have a significant number of employees working in the textiles and clothing industry.
Click here to read more details on WTO reports:
World Trade Organization
Popular News
Leave your Comments
Editor’s Pick
Folker Stachetzki
Brother Internationale Industriemaschinen GmbH
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
