This study analyzed the international competitiveness of textile machinery industry of Daegu City in which textile industry is one of the main sectors. For the analysis of competitiveness this study used the index of comparative advantage by country (...
This study analyzed the international competitiveness of textile machinery industry of Daegu City in which textile industry is one of the main sectors. For the analysis of competitiveness this study used the index of comparative advantage by country (CAC index). The data used in the study come from the trade statistics released by Korea International Trade Association(KITA) and PC-TAS CD ROM (2005 version). The period of analysis in this study is from 1999 to 2003.
It is necessary to expand the world market in the textile machinery industry, and the strategy is to export the competitive items into the market of India. Especially, the goods having higher comparative advantage than those of China should advance in the market of India, and additionally the goods less comparative advantage compared with those of China, but having comparative advantage in the market of India should advance in the market of India in the second stage.
According to the results of the study, the textile machinery except for HS8444 and HS8445 has higher comparative advantage than products of China. Thus those products should advance in the market of India in the first stage and both HS8444 and HS8445 should be advanced in the market of India in the second stage.