Abstract

This study examines the competitive dynamics between imported and locally produced textiles, focusing on pricing, quality perception, policy frameworks, and sustainability outcomes. Imported textiles often achieve strong market penetration due to economies of scale and lower production costs, reinforcing what Adam Smith described as the power of specialization in “The Wealth of Nations” (1776), where he noted that “the division of labor… increases the quantity of work.” Consumer preference is frequently shaped by perceived quality, branding, and global fashion influence. Trade regulations, tariffs, and exchange rate fluctuations significantly determine relative competitiveness, reflecting John Maynard Keynes’ assertion that “the ideas of economists… are more powerful than is commonly understood” (The General Theory, 1936). Meanwhile, locally produced textiles contribute to employment, cultural identity, and industrial development, aligning with Karl Polanyi’s view in “The Great Transformation” (1944) that markets are embedded within social structures. Sustainable growth depends on innovation, cost efficiency, strategic positioning, and supportive policy frameworks.