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The Evolution Of The Textile And Clothing Industry - Romania: From Lohn To Loss

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  • GIRNEATA Adriana

Abstract

Textile industry and clothing represent an important source of income and employment opportunities for many developing countries. Recent global economic events determined rapid changes which led to restructuring and reorganization of the industry. In recent years, in Europe and implicitly in Romania has increased the competition from a number of third countries, particularly in Asia, which benefit from low labour costs. An important feature of European textile and clothing industry is the widespread use of lohn production, which means that labour-intensive operations with lower added value are transferred in countries where labour cost is much lower. This article aims to analyze the evolution of textile and garments sector in Romania, which ranked among the top three manufacturers in the field at European level, highlighting the political and economic changes that have occurred and influenced the economic indicators of the industry. The analysis carried out is based on data collected from Romanian statistical yearbooks and the findings suggest that lohn production is not a long-term advantage for subcontracting companies.

Suggested Citation

  • GIRNEATA Adriana, 2015. "The Evolution Of The Textile And Clothing Industry - Romania: From Lohn To Loss," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 67(4), pages 176-187, September.
    • Handle: RePEc:blg:reveco:v:67:y:2015:i:4:p:176-187
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    File URL: http://economice.ulbsibiu.ro/revista.economica/archive/67412girneata.pdf
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    Citations

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    Cited by:

    1. Ruxandra DINULESCU & Adriana DIMA, 2019. "Improving Performance In Romanian Garment Industry By Using The Lean Six Sigma Methodology," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(1), pages 711-721, November.
    2. Adriana DIMA & Ruxandra DINULESCU, 2019. "A Lean Management Approach For The Romanian Textile And Clothing Industry," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 9(2), pages 21-31, June.

    More about this item

    Keywords

    textile and garment industry; lohn production; subcontracting activities; outsourcing;
    All these keywords.

    JEL classification:

    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • P42 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Productive Enterprises; Factor and Product Markets; Prices

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