-Berhanu Denu (PhD)Faysel Alemu2024-03-042024-03-042022-07https://etd.aau.edu.et/handle/123456789/2133Ethiopia has strong potential in the textile and apparel sector, due to low cost and trainablemanpower, raw material availability, and strong compliance and risk performance. In the past decades, the export contribution of the textile and apparel industry has shown a sharp rise. However, the sector has been challenged in obtaining quality raw materials, labor productivity, logistics, and infrastructure challenges. Despite these challenges, the textile industry has shown an increasing and comparable competitive advantage in the international market. The objective of the study is to examine factors that determine the competitiveness of the textile industry of Ethiopia. For this purpose, firstly, RCA and RSCA index for textile industry export is calculated. Then panel data techniques were employed to test the effect of FDI inflow, exchange rate, inflation rate, infrastructure, human capital and raw material using time series data extended from 1991 to 2020. Furthermore, primary data using in-depth interviews with selected experts were used to draw conclusions and forward recommendations. The results revealed that despite the potentialand the increasing trends in exports, Ethiopia’s textile industry hadn’t achieved the optimal level of competitiveness in the global market. To reach its optimal competitiveness, constraints related to raw material and backward linkage, labor productivity, logistics and infrastructure need to be addressed. Key Word: Competitiveness, Textile, Industrial Park, Determinants of exports,en-USThesis