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

World Bank

Washington, DC

关键词: ACCESS TO CAPITAL;    ACCESS TO CREDIT;    ACCESS TO FINANCE;    ACCESS TO FINANCING;    ADOPTION OF TECHNOLOGY;   

RP-ID  :  92881

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This note analyzes the impact thatjoining the Eurasian Customs Union will have on the KyrgyzRepublic s garment sector and options for improving thesector s competitiveness. The paper finds that joining theEurasian Customs Union will lead to higher prices for thetextiles and cloth used in garment production. This willincrease the cost of producing garments in the KyrgyzRepublic and will more than likely place downward pressureon exports from the Kyrgyz Republic, which will inducefirms, particularly less competitive ones, to exit from thegarment sector. To offset the increase in cost from highertariffs, it is recommended that the Kyrgyz Government aimsto increase productivity by lifting the constraints thatreduce the sector s competitiveness. This can be donethrough interventions to increase the use of new technology,improve knowledge of consumer markets, and strengthen skillsand education. This paper discusses these issues in fourparts. The first provides an economic context for thediscussion (Section I), which is followed by a discussion ofthe development of the garment sector and its importance forthe economy (Section II). The paper then assesses the impactthat joining the Customs Union (Section III) will have onproduction costs in the garment sector. Section IV describesthe constraints the sector s competitiveness and possibleinterventions to lift these constraints.