Import competition and domestic entrepreneurship China and Turkey's textile and clothing industry
Part of : MIBES Transactions : international journal ; Vol.4, No.1, 2010, pages 14-30
Issue:
Pages:
14-30
Author:
Abstract:
In today's increased level of competition the success lies in the ability to create innovative solutions to the markets. Therefore, entrepreneurial initiatives are very important both for firm level success and for the development of the national economy as a whole. While the empirical findings, related to the relationship between entrepreneurship and economic growth generate controversial results, entrepreneurship is still important for innovative capacity and success of both developing and developed countries. Accordingly, among the various determinants of entrepreneurship at the national level, current paper investigates the effect of import competition on entrepreneurship level in textile and clothing industry in Turkey. With its accession to World Trade Organization China is now the world's largest textile and clothing exporter. With the removal of the barriers, Chinese low-cost textile and clothing imports to Turkey increases the competition in the market lowering the product prices. However, examining the entry and exit rates in textile and clothing industry between the years 1996-2006, it has been found that firm entry in textile industry has significant positive correlations with both textile and clothing imports from China. Firm entry in clothing industry has also a positive correlation with textile imports from China but at a relatively low level of significance. Turkish textile and clothing firms and potential entrepreneurs in these industries are now concentrating on high-quality fashion markets in these industries. The firms shift the concentration from competing with low-quality Chinese products and started to focus on high-quality segments of the market. Accordingly it can be concluded that entrepreneurship level in Turkish textile and clothing industry, is not hindered by import competition but instead have a positive association with it.
Subject:
Subject (LC):
Keywords:
import competition, national entrepreneurship, liberalization, firm entry - exit
Notes:
Περιέχει διαγράμματα, πίνακες και βιβλιογραφία, JEL Classification Codes: M13, M16, F12
