THE EVOLUTION OF THE TEXTILE AND CLOTHING INDUSTRY - ROMANIA: FROM LOHN TO LOSS

Abstract

Textile industry and clothing represent an important source of income and employment opportunities for many developing countries. Recent global economic events determined rapid changes which led to restructuring and reorganization of the industry. In recent years, in Europe and implicitly in Romania has increased the competition from a number of third countries, particularly in Asia, which benefit from low labour costs. An important feature of European textile and clothing industry is the widespread use of lohn production, which means that labour-intensive operations with lower added value are transferred in countries where labour cost is much lower. This article aims to analyze the evolution of textile and garments sector in Romania, which ranked among the top three manufacturers in the field at European level, highlighting the political and economic changes that have occurred and influenced the economic indicators of the industry. The analysis carried out is based on data collected from Romanian statistical yearbooks and the findings suggest that lohn production is not a long-term advantage for subcontracting companies.

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