Changing revealed comparative advantage of textile and clothing sector of Pakistan : pre and post quota analysis

Many Asian countries have been beneficiaries of quota abolition for textile and clothing sector since 2005. After the implementation of the Agreement on Textile and Clothing (ATC) in December 2004, member countries of World Trade Organization (WTO) have quota-free trade except People's Republic of China (PRC). It was expected that Pakistan will be beneficiaries in textile and clothing due to expected superior export performance in this sector. Therefore, this study aims estimating revealed comparative advantage (RCA) of textile and clothing sector of Pakistan at HS-2digit level and SITC-3 digit level. It reveals Pakistan has comparative advantage in textile sector and low comparative advantage in clothing sector. Further, it analyzes RCA of textile and clothing sector during the period of pre and post quota and concludes that comparative advantage of Pakistan in textile and clothing sector has been declined during 2011-12.