Research On The Export Trade And Home Market Effect Of China's Textile And Garment Industry

In 1980 s,Krugman proposed the concept of the Home Market Effect,which different from the traditional trade theory,considering the influence factors of export trade from the supply side,the new trade theory represented by the Home Market Effect explores the mode of export trade from the perspective of demand..This paper starts with this theory,and discusses the Home Market Effect of China's traditional advantage industry,textile and garment industry in the export trade and industrial development.Based on the analysis of the classical trade theory and the new trade theory,firstly,this paper introduces the current situation of industry and export trade of China's textile and garment garment.According to relative export and relative home market demand relations linear model proposed by Weder(2003)and use the relevant data of 2005-2015 in China Textile and garment industry major partners Japan,the United States and the European Union in as a country on to be test the Home Market Effect of the textile and garment industry.this results show that the exports of China's textile and garment industry to major trading partners do not exist in the Home Market Effect.China's textile and garment export trade is still determined by the factor endowment advantage,in which the role of labor advantage is far greater than the role of capital investment.Secondly,for the further analysis of the textile and garment industry in the Home Market Effect of China's provincial level,use the data which from 30 provinces1997-2014 of China's(municipalities and autonomous regions)textile and garment industry.To analyze the textile industry and the textile and garment industry in each province(except Tibet),the results show that China's textile industry and textile and garment industry have the Home Market Effect at the provincial level.In the East,middle and west regions,the Home Market Effect and factor endowment advantage have different contribution to the industrial development.The eastern region is the highest in market demand of textile and garment industry.In the process of promoting the industrial transfer in the eastern region,we should pay attention to the needs of thecentral and western regions of the market conditions,the rational distribution of industrial transfer.Finally,The role of home market demand for the development of China's textile and garment exports and the development of the industry itself to provide a new driving force mechanism,so as to ensure the stable development of textile and garment export trade and the provinces of the textile and garment industry in China's textile and garment industry exports entered a period of adjustment and rising labor costs the demographic dividend,weaken the case.According to the difference of Home Market Effect of textile and garment industry in different provinces and cities,according to local conditions the development strategy of textile and garment industry.