ANALYSIS OF EXPORT COMPETITIVENESS TEXTILE AND APPAREL INDONESIA, CHINA, INDIA

DOI: 10.38035/DIJEFA Abstract: The textile and apparel industries are laborintensive and capital-intensive industries. The focus of this research looks at the competitiveness of textiles and apparel in Indonesia, China and India. The research method used is comparative descriptive, with the Herfindahl approach, Trade Specialization, Relevealed Comparative Adventage and Constan Market Share. Herfindahl calculation shows the market structure in Indonesia, China and India in the form of perfect competition. While the Trade Specialization approach, Indian exports are more stable than Indonesia and China. The TSR approach generally shows Export Promotion. The Revealed Comparative Adventage approach, Indonesia and India show stable and stagnant results, the RCA scale shows that China has a comparative advantage and strong competitiveness. Conclusion of the research, the market structure takes the form of a perfect competition and Export Promotion. China Has comparative advantages and strong competitiveness, followed by Indonesia and India.


INTRODUCTION
Indonesia, China, India are three countries with the population the top 5 in the world. Such a large population is a demographic bonus and at the same time a high social burden. China has a population of 1,379,302,771 people, with a ratio of 18.6% of the world's population (7,405,107,650 people: CIA World Factbook 2017). India has a population of 1,281,935,911 people (17.3%), Indonesia 260,580,735 people (3.5%). The large population is a strategic world market for other countries. A country with a large population is a force for industry in a country that prefers labor-intensive industries (Nordås & Geneva, n.d.). The textile and apparel industry is a combination of capital and labor intensive industries. The world community and industry whose population is more than 7 billion people, are very dependent and in need of textiles and apparel.
Indonesia's exports of textiles and clothing are spread in 188 countries in the world (WITS 2017) with the largest export destinations to the United States, Japan, China, Turkey, the Republic of Korea. Whereas China's export destinations are spread over 209 countries, with the largest destinations being the United States, Japan, Hong Kong, Vietnam and the United Kingdom. While the destination of exports of Indian textiles to 203 countries: America, Bangladesh, the United Arab Emirates, Britain and Germany. The main purpose of the three countries producing textile and apparel in the world is to America and Germany. Although China is an exporter of textiles and apparel to more than 209 countries, the Chinese market is flooded with textiles and apparel from Indonesia. The data for textile export and manufactured export are collected from UN COMTRADE Statistics from World Integrated Trade Solution (WITS) provided by World Bank (Alam, 2018) The strength of the Chinese economy is seen from the total export number of 2, 263,370,504.30  The competitiveness of the textile industry and apparel to a country can be seen from Revealed Comparative Adventange, (Jayawickrama & Thangavelu, 2010) a method that measures the export performance of a particular commodity in the total exports of a country. If the RCA value is greater than 1 then a country can be said to have a comparative advantage in commodities and strong competitiveness and or vice versa. Meanwhile, to measure the market structure and market share Herfindahl Index analysis is used, (Mcauliffe, 2014) If the Herfindahl Index approaches 0, the market structure shows perfect competition, whereas if more than 1 market structure is Monopolistic. The Constant Market share approach (Amador & Cabral, 2008) illustrates the effect of world growth, commodity effects, market effects and the effect of competitiveness on the observed changes in a country's exports. The final result of the CMS is obtaining an equation that illustrates the effect of world growth, Commodity effect, Market effect, and Competitive effect on the observed changes in a country's exports.

LITERATURE REVIEW
The textile and apparel sector is one of the most important economic sectors in the world. Many studies predict that India will get a significant share of the world textile and apparel trade because of the advantages of cheap labor and other resource factors (Kathuria, 2013). (Kathuria, 2013) analyzes the comparative advantage of India and Bangladesh for the world export trade in the apparel sector with the help of the Balassa index, Revealed Comparative Advantage. His research results show India has a comparative advantage up from 23 to 34 products while Bangladesh from 21 to 34 products. (Kilduff & Chi, 2007). (Guan et al., 2019) analyze raw materials, labor, capital, demand, related industries, strategies and policies that affect the international competitiveness of China's textile and apparel industry. Analysis was performed using the "Diamond Model", where raw materials, labor, capital, demand, related industries, strategies and policies were included as explanatory variables, and the impact of international competitiveness on market share (MS), trade competitiveness (TC) and comparative advantage (RCA) Research findings imply that it is necessary to increase investment in the fixed assets of the Chinese textile and apparel industry, accelerate the pace of equipment upgrading, increase the rate of industrialization, while strengthening the supply of textile raw materials, and reduce raw material prices, thereby reducing company costs textiles and apparel. (Jayawickrama & Thangavelu, 2010) Test trade relations and the level of export competitiveness between Singapore, China and India. The Balassa export performance index and dynamic RCA index were adopted to identify revealed comparative advantages (RCA) from Singapore, China and India in industrial products with 1 and 2 digit SITC levels. (Jayawickrama & Thangavelu, 2010) found that exports of Singapore and China complement each other, even though the level of complementarity has declined over time. Meanwhile, Singapore and India exports were found to be a stronger and more stable complement.

RESEARCH METHODS
The research method used is comparative descriptive (Lieberman, 2005), by making comparisons of textile products and apparel into three sample countries (Indonesia, India and China) with the Herfindahl Index, Trade Specialization Ratio, Relevealed Comparative Adventage and Constan Market Share approaches. Research period for eight years (2010)(2011)(2012)(2013)(2014)(2015)(2016)(2017). Data sourced from the World Integrated trade solution (WITS). The final results of this study provide an overview of: Comparative Advantages and Competitiveness, (Maryam et al., 2018). Balassa's competitiveness indicators are ex-post concepts (Balassa, 1965;Suwannarat, 2017). Many studies have determined a country's competitiveness via the paradigm of Balassa by comparing commodity share in its exports to the commodity share in world exports, referred to as its revealed comparative advantage (RCA) (Balassa, 1965;Seyoum, 2007;Huo, 2014;Suwannarat, 2017). If the RCA is greater than 1, it is taken as evidence of international competitiveness. It compares how well a country has done in export of some particular set of goods. Balassa (1967;Suwannarat, 2017) claims that comparative advantage is revealed by observed trade patterns, i.e. high shares of export markets. RCA is grounded in conventional trade theory and measures a country's exports of a commodity relative to that of a set of countries (Seyoum, 2007;Suwannarat, 2017)

A. Herfindahl index
Herfindahl Index (Mahajan, 2019): measures the size of companies in an industry group and as an indicator of the amount of competition among existing industries. Herfindahl Index value reflects the value of market share control by a company in an industry. HI = sij12 + sij2 2 + sij3 2 + ... + sijn2 (1) Where: HI = Herfindahl Index si = Country market share in the world trade in Textile & apparel commodities

n = Number of countries involved in world trade in Textile & apparel commodities B. Trade Specialization Ratio (TSR)
This method recognizes changes or shifts in comparative advantage for each product, which is developing and going down.

TSR = E (ij) -M (ij) E (ij) + M (ij)
(2) Where : E (ij) = Export value of commodity i from each country j every year M (ij) = Import value of commodity i from each country j every year TSR Method Stages: 1. Introduction stage, the TSR rate ranges from -1 to -0.5. 2. Stages of Import Substitution, the TSR rate ranges from -0.5 to 0 3. Stages of Export Expansion, TSR figures range from 0 to 0.8 4. Adult / maturation stage, TSR rate is around +0.8 C. Revealed Comparative Advantage (Maryam et al., 2018) RCA, a method of measuring the performance of certain commodity exports in the total exports of a country compared to the market share of these commodities with world trade.
The RCA formula is as follows: Where : RCA = Revealed Comparative Advantage = Country A's export value for commodities j = Value of total exports of country A = World export value for commodities j = Value of total world exports If the RCA value is greater than 1, it can be said that the country has a comparative advantage in related products and is highly competitive. If an RCA value of less than 1 indicates weak competitiveness (Saki et al., 2019)

D. Constant Market Share
The CMS method is based on the understanding that a country's export growth rate can be lower or higher than the world export growth rate (Amador & Cabral, 2008). A country's export growth can be described in three effects, namely the effect of commodity composition, the effect of market distribution, the effect of competitiveness. The three effects are then entered into one equation: Where : S = Market Share; q = Country; Q = world; q C ; s rowth ffect; s Competitiveness ffect f the result of q is positive it indicates an increase in world growth and an increase in competitiveness that contributes to an increase in a country's growth. The result of negative q menunjukkan shows a decrease in world growth and a decrease in competitiveness that contributes to the decline in a country's exports. Herfindahl index for exports of textiles and apparel Indonesia, China and India and the World from 2010 Until 2017 shows the market structure in the form of Perfect competition The results of data processing using the Trade Specialization Ratio (TSR) method, textile exports and apparel become India are more stable compared to Indonesia (2010, Introduction) and China (2015, introduction), but in general the pattern of trade development and stages of textile industrialization and apparel in three countries for the year 2010 to 2017 shows export promotion Indonesia and India have a stable Revealed Comparative Advantage (RCA) value, but when viewed from the size of the RCA, then China has a comparative advantage and has strong competitiveness in textile and apparel products, even though in 2015 the competitiveness of Chinese textiles and apparel is weak . In order for the RCA to be a dynamic measurement tool for knowing the strengths or weaknesses of excellence and competitiveness, it is necessary to include two elements of time. In this research the time approach was taken by including the RCA Index. Judging from the RCA index, Indonesia and India have the advantages and competitiveness of textiles and apparel in 2013, while China excellence and competitiveness of textiles & apparel in 2013 and 2016. In general, the results of research on Indonesia, China and India, countries China has a strong competitiveness in the textile and apparel industry compared to Indonesia and India. The calculation of Constant Market Share obtained results, the effect of the growth of textiles and apparel into the world and increase in the effect of the competitiveness of the textile industry and apparel contributed to the general increase in similar industries in China followed by an increase in Indonesia and India.

CONCLUSION AND SUGESTION
Herfindahl index calculation shows the market structure of Indonesia, China and India in the form of perfect competition. Whereas the approach to Trade Specialization Ratio of Indian exports is more stable than Indonesia and China. The TSR approach generally shows Export Promotion. The Revealed Comparative Adventage approach, Indonesia and India showed stable and stagnant results, when viewed as a whole the amount of RCA, China has a comparative advantage and strong competitiveness. followed by Indonesia and India.