From Rivals to Champions: Evaluating Pakistan's Denim Industry Competitiveness through the GEM Model

Abstract

The textile industry is the linchpin of Pakistan's economy, constituting 58% of total exports and employing 45% of the workforce. Despite its significance, textile exports have plateaued, urging strategic interventions to unlock untapped potential. This research focuses on the denim sector, a vital yet underexplored niche. Leveraging the Analytic Hierarchy Process (AHP) and the Grounding, Enterprises, and Markets (GEM) model, the study assesses the competitiveness of Pakistan's denim industry. Findings from structured questionnaires targeting industry professionals and experts reveal a GEM Score of 377, surpassing the national average and indicating national competitive advantages. The results highlight strengths in resources, infrastructure, and external markets while emphasizing the need to bolster local market engagement. The study not only underscores the current state of the denim industry but also charts a course for strategic initiatives, fostering growth and competitiveness on the global stage. Future research avenues explore causality, broaden the geographical scope, and adapt the GEM model for diverse textile sectors. This research offers practical insights for industry stakeholders, governments, and researchers to navigate the dynamic landscape of Pakistan's denim industry.