Change of input prices in textile industry and it's impact on performance of clothing companies

Many studies have been conducted on the topic of input output analysis in different sectors but none of them focused on impact of fluctuations in input prices on the performance of textile and clothing companies in Turkey. Accordingly, this thesis explores the impact of fluctuations in input prices on the performance of textile and clothing companies in Turkey, using secondary data from Turkish Statistical Institute (TÜİK). Using D-OLS model approach, the study uses price indexes of final textile and clothing products as dependent variables and Price indexes of crude oil, electric energy, water for industry, cotton, final textile product and minimal wage as independent variables. In this research D-OLS Cointegration regression model was estimated using E-views 9.0 software. The results from the test shows that all inputs in clothing industry have significant impact on prices of final product in both Textile and Clothing industry. The results confirm theoretical findings which claims positive relationship between inputs and price of final products along with strength of that impact for each variables. Textile and clothing industry is one of the strategic and most important sectors for Turkey. Turkey has natural resources, infrastructure and good geographic position to become one of the world leaders in appeal industry. Having accurate information about impact of inputs on their performance can be used to improve in all aspects of management. Since textile and clothing industry is world's most globalized and one of the most competitive and dynamic industries managing changes is crucial for success of companies so according to that this research's aim is to become framework for improving performance and management of textile and clothing companies in Turkey.