Competitiveness of Turkish Textile and Clothing Sector: China Threat in the Globalization Process

The textile and clothing sector which is the oldest industry of the world, takes important roles in the process of economic development, especially in developing countries by reason of both value added that is provided in the process of production and the sector?s high rate in the export revenues. The sector operating in variable market conditions is one of the most global sectors in the world. Parallel to this, today, it is possible to say that the textile and clothing firms are in an intense competition. In this regard, the basic aim of this study is to determine the position of Turkish Textile Sector in the global competitive environment. For this purpose, initially, the textile and clothing industry in Turkey is introduced and the regulations related to sector and their effects on the sector are explained. Subsequently, in the research part of this study, Turkish textile and clothing industry?s international competitiveness between 1998-2008 is analyzed with using Balassa's Revealed Comparative Advantage Index and Vollrath's three alternative measures of revealed comparative advantage. Additionally China threat on the sector after the elimination of quotas is highlighted.