The Assessment of Export Competitiveness of the Kyrgyz Republic and Application of Revealed Comparative Analyses (RCA) and Export Competitiveness Index (XCI) on the Example of Textile Industry for the Years 2010–2015

Abstract

The growth rate of the Kyrgyz Republic’s economy is slow and unstable, facing such problems as high level of unemployment and negative trade balance. This situation is partially caused by current trading environment, which has certain challenges preventing the export growth. The analysis of export competitiveness and its level is essential for the Kyrgyz Republic as it takes invaluable part of the economy in the country. The years 2010 and 2015 are important and challenging years for Kyrgyzstan, as it is the period of formation and recovery after two revolutions held in 2005 and 2010. Despite the high level of export diversification, unstable export relations inhibit the realization of the growth potential of Kyrgyzstan as well as low level of technological support of Kyrgyz exports. Moreover, significant concentration of the country on the markets of Kazakhstan and Russia stagnate the export development, as the trade turnover with other countries remains insignificant and is not stable, exporters do not have the production capacity to diversify its customer base, and slowly react to new challenges and market requirements. The analyses of export competitiveness includes the description of its main indicators. The export of textile industry of the Kyrgyz Republic is taken as an example to analyze the competitiveness based on Revealed Comparative Analyses (RCA) and Export Competitiveness Index (XCI).