An Empirical Analysis Of International Competitiveness Of Chinese Textile And Garment Industry

Textile and garment industry plays an important role in employment, foreign exchange reserves, stability of RMB exchange rate and occupy an important position in national economic development. With intensifying international competition,textile and garment industry of China are facing enormous obstacles for further development. However the Chinese textile and garment industry are still showing strong competitiveness in the international market. With weakening in the advantage of labor cost of Chinese textile and garment industry, what is the factor influencing the competitiveness of them and how can they maintain the competitive edge are the questions that should focused on.To design a competitiveness index system basis on Michael Porter's Diamond theoretical model, this paper uses principal component analysis method to do an empirical analysis of competitiveness of Chinese textile and garment industry and measures the factors of the competitiveness of Chinese textile and garment industry. Then, this paper analyzes the influence of the exchange rate, export tax rebates, the share of bank credit and other macro-policies on the international competitiveness of Chinese textile and garment industry. At last this paper draws a conclusion that the competitiveness of Chinese textile and apparel companies mainly is from the advantages of trade, trade potential advantages and core competitive advantages. With this conclusion this paper makes pieces of advice including maintaining China's textile and garment industry existing price advantage, improving trade textile and apparel industry potential advantages and enhancing the core competitiveness of textile and garment enterprise, and the state should maintain a stable exchange rate policy, effective export tax rebate policy, to take an increasing share in credit policy.