A Multi-Criteria Decision-Making Approach to Evaluate Trade Performance of Apparel Industry in BIMSTEC Countries During Volatile Trade Environment: Application of CRITIC-based TOPSIS

Abstract

This study assesses the trade performance of BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) nations in the apparel sector from 2021 to 2023, focusing on knitted (HS-61) and non-knitted (HS-62) clothing accessories. The region contributes majorly in global apparel trade but faces challenges from geopolitical disruptions, such as the COVID-19 pandemic and the Russia-Ukraine war. The study applies a Multi-Criteria Decision-Making (MCDM) approach, utilizing seven key trade indices: Balassa Index (RCA1), Revealed Systematic Comparative Advantage (RSCA), Revealed Comparative Advantage (RCA2), Lafay Index (LFI), Trade Balance Index (TBI), Market Concentration Index (MCI), and Relative Import Advantage (RMA). The CRITIC method is used to assign objective weights to these indices, while the TOPSIS method ranks the BIMSTEC countries based on their relative trade performance. The results reveal that Bangladesh emerged as the top performer in both product categories, driven by strong competitiveness and market diversification. Sri Lanka and India also ranked highly in the knitted category, while Myanmar improved its standing in the non-knitted sector. The findings suggest that countries with better trade diversification and competitiveness are better positioned to withstand volatility. The study offers policy insights for enhancing regional trade resilience to strengthen BIMSTEC's position in the global apparel market.