The Prospects and The Competitiveness of Textile Commodities and Indonesian Textile Product in the Global Market
Abstract
This study has two objectives: first, to test the competitiveness of Textile Commodities and Indonesian Textile Product (TPT) in the global market and identify the prospects of the new export markets. Second, identify the competitiveness of the textile industry using case studies in the Solo Raya region. The Revealed Comparative Advantage (RCA) and Export Product Dynamics (EPD) methods are using in this study. The results show that Indonesian TPT commodities have a lost opportunity category in the central export destinations countries, such as a decline in market share. Indonesian TPT commodities have prospects in Austria, Canada, Finland, Norway, Portugal, Qatar, and Sweden due to competitiveness and domination in the market. Besides, the condition of the Indonesian textile industry competitiveness shows low competitiveness in terms of factor conditions, demand conditions, supporting and related industries, strategy, structure, and competition that are components of Porter's diamond model.
JEL Classification: L6, L67
How to Cite:
Prasetyani, D., Abidin, A. Z., Purusa, N. A., & Sandra, F. A. (2020). The Prospects and The Competitiveness of Textile Commodities and Indonesian Textile Product in the Global Market. Etikonomi: Jurnal Ekonomi, 19(1), 1 – 18. https://doi.org/10.15408/etk.v19i1.12886.
Keywords
References
Erdil, A. (2019). An Evaluation on Lifecycle of Products in Textile Industry of Turkey through Quality Function Deployment and Pareto Analysis. Procedia Computer Science, 158, 735–744. https://doi.org/10.1016/j.procs.2019.09.109.
Esterhuizen, D. (2006). Measuring and Analyzing Competitiveness in the Agribusiness Sector: Methodological and Analytical Framework. (Unpublished Dissertation). Pretoria: University of Pretoria.
Guan, Z., Xu, Y., Jiang, H., & Jiang, G. (2018). International Competitiveness of Chinese Textile and Clothing Industry: a Diamond Model Approach. Journal of Chinese Economic and Foreign Trade Studies, 12(1), 2-19. https://doi.org/10.1108/JCEFTS-01-2018-0003.
Hadzhiev, V. (2014). Overall Revealed Comparative Advantages. Eurasian Journal of Economics and Finance, 2(1), 47-53.
Hamid, M. F., & Aslam, M. (2017). Intra-regional Trade Effects of ASEAN Free Trade Area in the Textile and Clothing Industry. Journal of Economic Integration, 32(3), 660-688. https://doi.org/10.11130/jei.2017.32.3.660.
Hermawan, I. (2018). Paradigma Pengelolaan Industri TPT: Perspektif Swasembada Kapas vs Kondisi Berbasis Impor (The TPT Industry Management Paradigm: Cotton Self-Sufficiency Perspective vs Import Based Conditions.). In Rusastra, I. W. Pengembangan Industri Tekstil Nasional: Kebijakan Inovasi dan Pengelolaan Menuju Peningkatan Daya Saing (Development of the National Textile Industry: Innovation and Management Policies Towards Increased Competitiveness). Jakarta: Yayasan Pustaka Obor Indonesia.
Hinloopen, J., & Van Marrewijk, C. (2008). Empirical relevance of the Hillman condition for revealed comparative advantage: 10 stylized facts. Applied Economics, 40(18), 2313-2328. https://doi.org/10.1080/00036840600949488.
Ku, C-C., Chien, C-F., & Ma, K-T. (2020). Digital Transformation to Empower Smart Production for Industry 3.5 and an Empirical Study for Textile Dyeing. Computers and Industrial Engineering, 142, 106-120. https://doi.org/10.1016/j.cie.2020.106297.
Kuncoro, M. (2013). Indonesia’s Textile and Its Products Industry: Recent Development and Challenges. International Journal of Business and Economic Development, 1(3), 60–75.
Padilha, C. K., & Gomes, G. (2016). Innovation Culture and Performance in Innovation of Products and Processes: a Study in Companies of Textile Industry. RAI Revista de Administração e Inovação, 13(4), 285-294. https://doi.org/10.1016/j.rai.2016.09.004.
Parrish, E., Berdine, M., Cassill, N., & Oxenham, W. (2008). Measuring the Competitive Advantage of the US Textile and Apparel Industry. in Industry Studies Conference Paper. https://doi.org/10.2139/ssrn.1134985.
Porter, M. E. (1998). The Competitive Advantage of Nations: With a New Introduction. New York: The Free Press.
Sabonien, A., Masteikien, R., & Venckuvien, V. (2014). Exogenous Factors of the Textile-related Low-tech Industries Competitiveness in Lithuania. Procedia - Social and Behavioral Sciences, 156, 298–303. https://doi.org/10.1016/j.sbspro.2014.11.192.
Salvatore, D. (2014). Ekonomi Internasional, 9th ed (International Economics). Jakarta: Salemba Empat.
Shen, B., & Li, Q. (2019). Green Technology Adoption in Textile Supply Chains with Environmental Taxes: Production, Pricing, and Competition. IFAC-PapersOnLine, 52(13), 379–384. https://doi.org/10.1016/j.ifacol.2019.11.153
Shihab, M., & Jain, S. K. (2004). The Preparedness of the Indonesian Garment Exporters in the Post-MFA Scenario: An Analysis from the Survey. Gadjah Mada International Journal of Business, 6(3), 383-404. https://doi.org/10.22146/gamaijb.5555.
Susilo, S. (2013). ASEAN Economic Community Implementation and Indonesian Textile Industry Competitiveness. Economic Journal of Emerging Markets, 5(2), 120-135. https://doi.org/10.20885/ejem.vol5.iss2.art5.
Tambunan, T. T. H. (2008). Daya Saing Global Indonesia 2008-2009 versi World Economic Forum [WEF] (Indonesian Global Competitiveness 2008-2009 according to the World Economic Forum [WEF]). Working Paper. Kadin Indonesia.
Wahyuni, S., & Boeditomo, P. T. (2015). Does the Quality of Work Life Influence Competitiveness? A Comparison between Indonesia and Vietnam. Global Business and Management Research: An International Journal, 7(1), 32-59.
Zhao, H., & Lin, B. (2020). Impact of Foreign Trade on energy efficiency in China’s textile industry. Journal of Cleaner Production, 245,10-16. https://doi.org/10.1016/j.jclepro. 2019.118878.
Zuhdi, F., & Suharno, S. (2015). Analisis Daya Saing Ekspor Kopi Indonesia dan Vietnam di Pasar ASEAN 5 (Analysis of the Competitiveness of Indonesian and Vietnamese Coffee Exports in the ASEAN Market 5). Habitat, 26(3), 152-162. https://doi.org/10.21776/ub.habitat.2015.026.3.18.
DOI: 10.15408/etk.v19i1.12886
Refbacks
- There are currently no refbacks.
Copyright (c) 2020 ETIKONOMI