30

**Table 16:** _Shift away from clothing global value chain of EU-8 and share of clothing in exports of manufactured goods excluding chemicals and ‘buyer-driven’ exports in 1992-2004 (in percent)_

|Country|Peak<br>Year|Share in<br>Peak Year<br>(%)|Percent<br>Share in<br>2004|Exports ($ million)<br>2004|Index: 2004<br>Peak=100|Least Square<br>Growth (%)<br>1995-04|Share<br>driven’<br>1995|of T&C<br>chains’ <br>2004|in ‘buyer-<br>exports in<br> <br>% point ch.|
|---|---|---|---|---|---|---|---|---|---|
|**EU-8**||||||||||
|Czech R.|1993|7.4|2.0|858|26|-11.1|70.7|64.3|-6.4|
|Estonia|1993|27.5|7.0|279|25|-10.5|76.2|56.3|-19.9|
|Hungary|1992|20.8|3.1|1,134|15|-15.8|71.0|64.5|-6.5|
|Latvia|1994|22.7|14.6|271|64|-1.5|83.9|72.0|-12.0|
|Lithuania|1999|34.8|19.3|678|56|-4.0|88.6|64.8|-23.8|
|Poland|1993|21.4|4.3|1,834|20|-15.4|65.6|38.3|-27.2|
|Slovak R.|1994|8.9|3.3|668|37|-8.7|69.3|54.4|-15.0|
|Slovenia<br>**SEE-4**|1992|15.6|3.7|368|24|-12.2|62.7|41.0|-21.6|
|Albania|2000|41.5|34.0|143|82|-1.6|57.6|45.7|-11.9|
|BiH|1998|28.5|16.1|153|56|0.7|44.9|36.2|-8.6|
|FYROM|2003|47.9|40.1|408|84|1.4|88.1|88.7|0.6|
|S and M<br>**EU-candidates**|1992|22.4|11.2|207|50|7.7|59.8|58.7|-1.1|
|Bulgaria|2001|37.7|31.2|1,616|83|5.1|82.6|80.9|-1.7|
|Croatia|1993|32.3|17.1|613|53|-5.7|67.6|64.6|-3.0|
|Romania|1999|37.1|29.5|5,276|80|0.7|64.0|66.2|2.2|
|**Turkey**|**1992 **|**46.9**|**27.2**|**12,057 **|**58**|**-4.2**|**98.3**|**95.4**|**-2.9**|

Note: Manufactured goods excluding chemicals Source: Computations based on world import data from UN COMTRADE Statistics.

A feature setting Turkey aside from EU-8 firms’ involvement in ‘buyer-driven’ value chains is a relatively much smaller presence of furniture chains in exports of ‘buyer-driven’ chains. The value of their exports of US$ 180 million was about half of exports of furniture network and one-tenth of T&C exports (Table 17). In contrast to most EU-8, the T&C chain towers over other buyer-driven’ value chain with the share in total ‘buyer-driven’ chains’ exports at 96 percent in 2003. Except for Macedonia, the dominance of T&C chain is much less pointed in exports from other countries.

Yet, Turkey appears to be moving along the same path that the EU-8 economies took earlier, with its furniture sector rapidly becoming integrated into international supply chains. Although the share of furniture network’s products in exports of manufactured goods (excluding chemicals) remains well below the levels in other transition pan-European countries,<sup>15</sup> there are some signs of change in EU-25-destined exports. The contraction, admittedly very small, in the share of T&C products in total exports of ‘buyer-driven’ chains from 99 percent in 2000 to 96 percent in 2003 has been only because of the emergence of the furniture network as a significant exporter (Table 17). The value of exports of furniture network reached US$ 456 million in 2003, with its share in total ‘buyer-driven’ exports almost quadrupling from 0.8 percent in 1995 to 2.9 percent in 2000 and further rising to 2.5 percent in 2003 and 3.3 percent in 2004.

> 15 The lowest share among EU-8 was 2 percent (Hungary) as compared to Turkey’s 1.5 percent. This share was the highest in Lithuania’s exports (13.4 percent) followed by Poland (11 percent), Estonia (10 percent) and Latvia (9 percent). In both Bulgarian and Romanian, the share was higher than in Turkey’s exports and amounted in 2003 to 3.4 percent and 5.5 percent respectively.