Analysis On The Impact Of Labor Productivity On China’s Textile Industry Transfer-based On Core And Periphery Model

Industry transfer is an important way to adjust industry upgrade and upgrade theindustry, and the industry transfer and agglomeration usually follow certain patterns.China’s textile industry is an important livelihood industry, and also the pioneer inindustry transfer. Since the implementation of reforming and opening up policy,China’s industry has been at the mature stage but with imbalanced development. Thetextile industry agglomerated in eastern regions and developed slowly in westernregions. With the increasing cost of eastern regions and better infrastructure inwestern regions, the textile transferred to the central and western regions gradually.This paper focuses on the influencing factors of China’s textile transfer and attemptsto explain the sluggish transfer.Based on literature review, this paper uses core-periphery model of spatialeconomics to normatively analyze the influencing factors of manufacturing industrytransfer. Then entropy index is used to quantitatively measure the textile industrialagglomeration of the31provinces, municipalities or autonomous regions in Chinaduring2004and2011. And a regression model is established to measure theinfluencing factors of such industrial agglomeration. And results show that location,labor productivity, international demand, industry environment and thetransportation cost have a significant impact on the agglomeration of China’s textileindustry. However, the domestic demand and industrial development potential haveno significant effect on the agglomeration of China’s textile industry.The normative analysis and empirical study show that industries tend to transferto central and western regions with lower costs. And endowment factors, marketfactors, industry competitiveness and transportation factors are the main influencingfactors of industry transfer. Currently, the sluggish transfer of China’s textile industryis caused by location advantages, labor productivity advantage and highertransportation costs of eastern regions.