The Path Selection Of Textile And Garment Enterprises’ Internationalization In China

With the implementation of the strategy of “B&R” in our country, the trend of “going out” is prevailing again in all walks of life, especially for the textile and garment industry, the so called “sunset industry”, which will be a good chance to win a turnaround. China’s textile and garment enterprises entered the international market early in the form of export, which contributed a lot to the economic growth. In recent years, however, due to the appreciation of RMB, disappearance of the demographic dividend, increase of trade friction and barriers, export-oriented enterprises are facing unprecedented difficulties. Faced with the opportunities and challenges of international development, where should the textile and garment enterprises go?Both export and direct foreign investment are important paths of enterprises’ internationalization. Face with serious foreign environment, this paper approaches that how to make a choice of export or FDI according to their own characteristics. In the perspective of enterprise’s multiple heterogeneity, this paper, which is based on the theory of international trade and direct foreign investment and combines with the characteristics of textile and clothing industry in China, build a multivariate Logit model to explore the influence factors of the selection of textile and garment enterprises to internationalization. Thus the paper will put forward some constructive suggestions to the enterprises.Using Stata software, the paper fit a multivariate logit model of the selection of textile and garment enterprises to internationalization. According to the result of model, the paper draw the following conclusions: 1. Comparing export enterprises with domestic enterprises, the paper finds that the result is contrary to the former conclusion. Low-performing enterprises choose to export spontaneously. With the situation of textile and garment industry and China’s national condition, the author think the paradox is mainly attributed to the trade pattern of enterprises, the distorted price of factor, and market segmentation. 2. Comparing FDI with export enterprises, the paper finds that the result is in line with the former conclusion. Enterprises of high-productivity prefer to FDI. Moreover, the enterprise with higher ability of technology tend to FDI. The enterprise with higher brand awareness tend to export.