Kyrgyz Republic - The Garment Sector : Impact of Joining the Customs Union and Options to Increase Competitiveness

This note analyzes the impact that joining the Eurasian Customs Union will have on the Kyrgyz Republic s garment sector and options for improving the sector s competitiveness. The paper finds that joining the Eurasian Customs Union will lead to higher prices for the textiles and cloth used in garment production. This will increase the cost of producing garments in the Kyrgyz Republic and will more than likely place downward pressure on exports from the Kyrgyz Republic, which will induce firms, particularly less competitive ones, to exit from the garment sector. To offset the increase in cost from higher tariffs, it is recommended that the Kyrgyz Government aims to increase productivity by lifting the constraints that reduce the sector s competitiveness. This can be done through interventions to increase the use of new technology, improve knowledge of consumer markets, and strengthen skills and education. This paper discusses these issues in four parts. The first provides an economic context for the discussion (Section I), which is followed by a discussion of the development of the garment sector and its importance for the economy (Section II). The paper then assesses the impact that joining the Customs Union (Section III) will have on production costs in the garment sector. Section IV describes the constraints the sector s competitiveness and possible interventions to lift these constraints.

Bibliographic Details

Main Author:	World Bank
Format:	Policy Note biblioteca
Language:	English en_US
Published:	Washington, DC 2014-06
Subjects:	ACCESS TO CAPITAL, ACCESS TO CREDIT, ACCESS TO FINANCE, ACCESS TO FINANCING, ADOPTION OF TECHNOLOGY, ADVISORY SERVICES, AGRICULTURAL PRODUCTS, AGRICULTURE, BANK CREDIT, BENCHMARK, BENCHMARKING, BENCHMARKS, BRAND, BUSINESS CLIMATE, BUSINESS INDICATORS, BUSINESS OPERATIONS, BUSINESSES, CAPABILITIES, CAPITAL INVESTMENTS, CERTIFICATES, COMPARATIVE ADVANTAGE, COMPETITIVENESS, COMPETITIVENESS INDEX, CONSUMER MARKETS, CONSUMERS, CORRUPTION, CUSTOMER SEGMENTS, CUSTOMS, CUSTOMS CLEARANCE, CUSTOMS CLEARANCES, CUSTOMS UNION, DIVERSIFICATION, DOMESTIC MARKET, ECONOMIC ACTIVITY, ECONOMIC CRISIS, ECONOMIC EFFECT, ECONOMIC GROWTH, ECONOMIES OF SCALE, ELECTRICITY, EMPLOYEE, EMPLOYERS, EMPLOYMENT GROWTH, ENTERPRISE SURVEYS, ENTREPRENEURS, EQUIPMENT, EXPORT MARKETS, EXPORT PROMOTION, EXPORT PROMOTION AGENCIES, EXPORTS, EXTERNAL FINANCING, FINANCES, FINANCIAL CRISIS, FINANCIAL DISTRESS, FINANCIAL SERVICES, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN INPUTS, FOREIGN INVESTORS, FOREIGN TRADE, FOREIGN TRADE POLICY, GDP, GLOBAL COMPETITIVENESS, GLOBAL ECONOMY, HIGH INTEREST RATES, IMPORT DATA, IMPORTS, INCOME LEVELS, INDUSTRIALIZATION, INFORMAL ECONOMY, INNOVATION, INNOVATION POLICY, INTERNATIONAL MARKETS, INTERNATIONAL TRADE, ITC, LABOR MARKET, LACK OF ACCESS, LICENSES, LIMITED ACCESS, LIMITED ACCESS TO FINANCE, LOAN PROGRAM, MANUFACTURING, MARKET ACCESS, MARKET DEMAND, MARKET FAILURES, MARKET FORCES, MARKET INFORMATION, MARKET POWER, MARKET SEGMENTS, MARKETING, MATERIAL, MERCHANDISE, NETWORKS, NEW TECHNOLOGIES, NEW TECHNOLOGY, NICHE MARKET, NICHE MARKETS, PERFORMANCES, POOR ACCESS, PRIVATE PARTNERSHIPS, PRODUCTION COSTS, PRODUCTION PROCESSES, PRODUCTIVITY, PUBLIC POLICY, PUBLIC-PRIVATE PARTNERSHIPS, PURCHASING, PURCHASING POWER, PURCHASING POWER PARITY, RECESSION, REMITTANCES, RESULT, RESULTS, RETAIL, REVOLVING LOAN, SALES, SKILLED LABOR, SOCIAL NETWORKS, SUPPLIERS, SUPPLY CHAIN, SUPPLY CHAINS, TARIFF LINES, TARIFF SCHEDULES, TAX SYSTEM, TAX TREATMENT, TECHNICAL EXPERTISE, TECHNICAL SKILLS, TOTAL COSTS, TOURISM, TRADE DATA, TRADE INDICATORS, TRADE POLICY, TRADE PROMOTION, TRADE REGIME, TRADE REGULATIONS, UNION, USER, VALUE ADDED, VALUE CHAIN, VALUE CHAINS, WAGE RATES, WAGES, WORKING CAPITAL, WORLD TRADE, WTO,
Online Access:	http://documents.worldbank.org/curated/en/2014/06/20460187/kyrgyz-garment-sector-impact-joining-customs-union-options-increase-competitiveness http://hdl.handle.net/10986/21103
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