Abstract:

The research orientation in this paper focuses on the analysis of changes in the competitiveness of the Western Balkan countries’ textile industry in the European Union market. The export orientation of these countries’ manufacturing industries and their long-term linkage to the production and trade flows of European integration processes are part of a broader effort to establish sustainable growth models for these transition economies. For the purpose of complex analysis and measurement of the export competitiveness of one industry of these national economies, methodology based on data on international trade – the Trade Performance Index (TPI) as well as the Revealed Comparative Advantage index (RCA) indicators, using the formula Balas, was used. The results of measuring the export competitiveness of textiles and clothing from the Western Balkan countries to the EU-28 market indicate the continued growth of the market share and the existence of its identified comparative advantages. This leads to the conclusion that there are positive dynamics of change and growing competitiveness of this industry. However, the relatively high level of specialisation of the region for the export of these products and its dominant share in the total exports of individual countries indicates the absence or slowness of structural changes necessary for faster economic growth.