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An international comparison of productivity change in the textile and clothing industry: a bootstrapped Malmquist index approach

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  • Magdalena Kapelko
  • Alfons Oude Lansink

Abstract

Firms in the textile and clothing industry operate in competitive international markets characterized by the liberalized trade after the removal of multi-fiber agreement quotas in 2005, and have to address rapid changes in consumer preferences and production technology. Hence, improving competitiveness is crucial for firm survival. Competitiveness of the sector often depends on its firms meeting their production potential. This paper analyzes productivity changes in the textile and clothing industry worldwide during the period 1995–2004. A bootstrapped Malmquist approach is used to identify the respective contributions of technical change, technical efficiency change, and scale efficiency change. Moreover, differences in productivity changes across different groups of firms are statistically assessed. Our results show a relatively small overall productivity increase for both textile and clothing firms due to positive technical change, despite declines in technical and scale efficiency. Furthermore, our results indicate that productivity and its components differ for textile firms and clothing firms, for firms in countries that benefited and did not benefit from the quotas’ elimination, and for firms in different regions. Copyright The Author(s) 2015

Suggested Citation

  • Magdalena Kapelko & Alfons Oude Lansink, 2015. "An international comparison of productivity change in the textile and clothing industry: a bootstrapped Malmquist index approach," Empirical Economics, Springer, vol. 48(4), pages 1499-1523, June.
    • Handle: RePEc:spr:empeco:v:48:y:2015:i:4:p:1499-1523
    DOI: 10.1007/s00181-014-0835-5
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    2. Park-Poaps H, 2018. "The Roles Technological Advancement and Knowledge Transfers in the Global Textiles and Clothing Sector," Current Trends in Fashion Technology & Textile Engineering, Juniper Publishers Inc., vol. 2(1), pages 13-17, January.
    3. Nguepi Tsafack Elvis & Hua Cheng & Buregeya Ingabire Providence, 2022. "The Illustrative Understanding on the Informal Sector and Its Influence in Firm Productivity in Sub-Saharan Africa (SSA): Evidence from Cameroon," Sustainability, MDPI, vol. 14(15), pages 1-22, August.
    4. Houyem Zrelli & Abdullah H. Alsharif & Iskander Tlili, 2020. "Malmquist Indexes of Productivity Change in Tunisian Manufacturing Industries," Sustainability, MDPI, vol. 12(4), pages 1-20, February.
    5. Bansal, Pooja & Kumar, Sunil & Mehra, Aparna & Gulati, Rachita, 2022. "Developing two dynamic Malmquist-Luenberger productivity indices: An illustrated application for assessing productivity performance of Indian banks," Omega, Elsevier, vol. 107(C).
    6. Pontus Mattsson & Jonas Månsson & Christian Andersson & Fredrik Bonander, 2018. "A bootstrapped Malmquist index applied to Swedish district courts," European Journal of Law and Economics, Springer, vol. 46(1), pages 109-139, August.
    7. Sarker Jewel & Jongyi Hong & Chaechang Im, 2022. "Innovation Strategies for Textile Companies in Bangladesh: Development Using Quadrant Analysis Based on a Productivity Index," Sustainability, MDPI, vol. 14(24), pages 1-15, December.
    8. Mattsson, Pontus & Tidanå, Claes, 2019. "Potential efficiency effects of merging the Swedish district courts," Socio-Economic Planning Sciences, Elsevier, vol. 67(C), pages 58-68.

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    More about this item

    Keywords

    Data envelopment analysis; Malmquist index; Bootstrap; Textile; Clothing industry; C61; D24; L67; O33; P52;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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