Assessing the Competitiveness of Serbian Textile and Apparel Industry Exports Using RCA Index and TPI Indicators

Abstract

Due to the paucity of relevant research, little is known about emerging patterns of competitiveness in the textile and apparel (T&A) industry in Balkan countries. Research focused on the Serbian T&A industry after 2006, when the country renewed its independence, is particularly sparse. The purpose of this research is to contribute to a greater understanding of emerging competitiveness and its main determinants in the Serbian T&A industry, in the time period between 2007 and 2019, and in the context of the EU-28 market. Balassa’s Revealed Comparative Advantage index and the Trade Performance Index instruments were used to assess export competitiveness, while the key competitiveness determinants were explored drawing on Porter’s (1990) theory of the Competitive Advantage of Nations. Findings confirmed that Serbia, a low-income country and not an EU member, retained a distinguished and strong T&A export potential, which confirms that the country is a competitive player in international trade.