Competitiveness Of Chinese Textile And Garment Industry And Industry Trade Patterns To Explore

Textile industry is the backbone industry in China and is absolute "China-born" industry. China's textile export accounts a large percentage in both the domestic export and global textile export. There's relative advantage such as relative advantage in raw material cost, labor cost, land cost etc. however it's fading away while some newly arising countries are showing their advantages in this area. In this paper, we use revealed relative advantage index and reveled competitiveness index to measure the overall and detailed situation of China's textile industry, thus we find out that some textile products still have obvious relative advantage. As the economy integration develops in both Asian and global scale, regional trade pattern becomes more and more complex. Using statistic analysis, we come to the conclusion that in China's textile industry, the average level of vertical intra-industry trade is going up slightly while mainly stays stable. Horizontal intra-industry trade and traditional inter-industry trade is going down slightly while mainly stays stable. Moreover, horizontal intra-industry trade stays in a low level while one way inter-industry trade still accounts for a high percentage. Last but not least, we utilize demonstration analysis to classify intra-industry into vertical intra-industry and horizontal intra-industry to find out the determinants and the current situation for both kinds of intra-industry. The result shows the increase of intra-industry trade especially the vertical kind becomes more and more critical in the increase of China's textile trade. While inter-industry still dominates garment products trade. The econometrics result shows that the gap of GDP per capita in different countries is one of the main determinants which influences the intra-industry level of China's textile industry trade.