Publication: Kyrgyz Republic - The Garment Sector : Impact of Joining the Customs Union and Options to Increase Competitiveness
Date
2014-06
ISSN
Published
2014-06
Author(s)
World Bank
Abstract
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.
Link to Data Set
Citation
“World Bank. 2014. Kyrgyz Republic - The Garment Sector : Impact of Joining the Customs Union and Options to Increase Competitiveness. © Washington, DC. http://hdl.handle.net/10986/21103 License: CC BY 3.0 IGO.”