ABSTRACT
The present chapter aims to operationally define the determinants of export competitiveness (EC) such as labour productivity (LP), capital productivity (CP), exchange rate (ER), unit labour cost (ULC), and real effective exchange rate (REER) in the Indian textile industry by reviewing the existing literature. This aim has been achieved by understanding various definitions, models, and theories specified by the scientists, management thinkers, and researchers over the period of time, i.e. 1991–92 to 2014–15. The findings of this chapter reveal that the textile industry is both labour and capital intensive. It therefore becomes pertinent to understand whether the Indian textile industry and its two groups are productive in terms of labour and capital. Moreover, the impact of labour and capital productivity over EC needs to be determined. Hence, it can be hypothesized that there is a long-run relationship among the select variables for the Indian textile industry and its two groups, i.e. the ‘textiles’ group and the ‘textile products’ group.
