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Formation of Competitive Advantages of the Textile Sector in the Context of Ukrainian-Canadian Economic Relations: Features and Challenges
Darmits R. Z., Novosad S. V.

Darmits, Rostyslav Z., and Novosad, Serhii V. (2025) “Formation of Competitive Advantages of the Textile Sector in the Context of Ukrainian-Canadian Economic Relations: Features and Challenges.” Business Inform 10:94–105.
https://doi.org/10.32983/2222-4459-2025-10-94-105

Section: International Economic Relations

UDC 339.5(477+71)

Abstract:
Based on the analysis of the current state of the studied sector and the international trade in textile products between Ukraine and Canada, the key competitive advantages of domestic enterprises that enabled them to successfully enter and consolidate their positions in niche segments of the foreign market have been identified. A correlation-regression modeling approach was applied to determine the relationship between the sources of competitive advantages of Ukrainian textile enterprises and the resulting performance indicators, using official statistical data available in open sources. The data series for the relevant period were analyzed. For domestic market activity, the volume of industrial products sold was chosen as the dependent variable, while the independent variables included the average wage level, number of employees, volume of capital investments, and expenditures on imported textile raw materials for production needs. To model the impact of the sources of competitive advantage on the success of international economic activity, the value of exports was selected as the dependent variable, with the independent factors being the average GDP level in USD equivalent, number of employees, volume of foreign direct investment, and expenditures on imported textile raw materials. One of the strongest features of the domestic textile sector remains its competitive production cost, driven by the availability of inexpensive yet skilled labor compared to other countries. International cooperation is further supported by existing free trade agreements and the presence of a significant Ukrainian diaspora in Canada, which contributes to stable demand. However, alongside historical geographical distance, the textile industry currently faces a range of challenges, including enterprise security concerns, disruptions in electricity supply, and the deterioration of the investment climate as a result of the ongoing full-scale war.

Keywords: international trade, textile sector, competitive advantages, challenges.

Fig.: 4. Tabl.: 2. Bibl.: 28.

Darmits Rostyslav Z. – Candidate of Sciences (Economics), Associate Professor, Department of Management and International Entrepreneurship, Scientific-Educational Institute of Economics and Management of the Lviv Polytechnic National University (5 Mytropolyta Andreia Str., Lviv, 79013, Ukraine)
Email: [email protected]
Novosad Serhii V. – Masters Student, Scientific-Educational Institute of Economics and Management of the Lviv Polytechnic National University (5 Mytropolyta Andreia Str., Lviv, 79013, Ukraine)
Email: [email protected]

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