Analysis On Chinese Wooden Furniture Industry Competitiveness

During past decades, Chinese wooden furniture industry has witnesses a high-speed growth, and quickly becoming a world leading exporter. However, given the intensification of global competition, it is crucial to assess its present status, competitiveness changes and challenges against other trading nations. Also it is important to understand how do the essential factors influence the industry competitiveness.The thesis consists of three main parts, using quantitive method to discuss the competitiveness of Chinese wooden furniture industry, based on Michael E. Porter's 'Diamond Model'. The first part introduces the background and methods used in this thesis, reviews the literature on industry competitiveness and generalizes the development situation of Chinese wooden furniture industry; And then in the second part, revealed comparative advantage indices indicate that China has experienced a transition from comparative disadvantage into a high comparative advantage over the period. But China still falls behind of the traditional strong competitors like Italy and Germany. And the high-income countries are gradually losing their comparative advantage to the low-tier countries by two different paths. Besides that, this paper analyzes the intra-industry trade of worldwide wooden furniture, which offsets the flaw of RCA measurements;Then the paper discusses the influencing factors of Chinese wooden furniture industry competitiveness, and builds a multiple linear regression model to evaluate how the influencing factors works; Finally, a summary of the conclusions and some corresponding policy suggestion are presented in the last part.