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 hig...

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Bibliographic Details
Main Author:	World Bank
Format:	Policy Note
Language:	English en_US
Published:	Washington, DC 2015
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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Summary:	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.

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

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