Who is the next China? Comparative advantage analysis from top ten apparel exporting nations

Abstract

Purpose This study aims to measure the competitiveness of top apparel exporting nations competing with China in different apparel product categories across the global environment. Design/methodology/approach Compound annual growth rate, trade competitiveness, market share percentages, revealed comparative advantage and its variant normalized revealed comparative advantage using two-, four- and six-digit harmonized system codes for the period of 2016–2021 were used to understand the comparative advantage of competing apparel exporting nations. Findings The findings revealed that China still holds a more decisive comparative advantage than its competitors over the majority of the product categories within the knitted or not knitted apparel and clothing accessories. The other competing nations hold better export competitiveness over China in specific categories. However, that is not sufficient to be the “Next China.” Research limitations/implications The study has important implications for different stakeholders of the global apparel industry, such as governments, industry officials, policymakers, investors, researchers and students. The study’s limitations arise from using product categories as competitiveness indicators, notably relying on a macro level approach for measurement while the micro level perspective is not analyzed, which constitutes a significant limitation of the study. Originality/value This research thoroughly analyzes the competitive position of the top ten apparel-exporting countries in the global market.