An Analysis Of The Factors Affecting The International Competitiveness Of China's Textile And Garment Industry

Textile garment industry is one of the advantageous industries with international competitiveness in China,a major importer and exporter around the globe.In recent years,as prices of factors such as labor force,land,raw material and energy in China rise constantly,China's textile garment industry has gradually lost its competitive advantage of price based on low costs.Against a backdrop of aggravating global trade disputes and increasingly fierce market competition of the world,maintaining the industry competitiveness is of significance to facilitate export growth and drive domestic economic development.With a revival of European economy and a rise of new trade protectionism in US,Europe,which is a major target market of Chinese textile exports,has been a key factor of the international competitiveness of China's textiles.Therefore,the thesis,taking the European market as an example,conducts a research on influencing factors of the global competitiveness of textile garment exports of China.The paper adopts Constant Market Share Model and empirical research method to analyze influencing factors of the industry's global competitiveness.First,influencing factors of volume changes of China's exports to Europe are analyzed by the Constant Market Share Model.According to import data of the European textile garment market in recent years,major competitors of our country in exporting sector are found to be Turkey and India,respectively.Subsequently,influencing factors of export volume changes are obtained by calculating data of the three countries in the model,thus comparing conditions of the three countries.Second,detailed influencing factors of the competitiveness of China's textile garment industry are studied by using the empirical analysis.A multiple regression analysis is conducted by taking revealed comparative advantage index as a dependent variable,which replaces industrial global competitiveness and adopting factors including labor force,technological innovation,European market scale,economic development of the industry and openness degree of Chinese market as independent variables.It is concluded from the above model that,volume growth of our textile garment exports is mainly driven by the expansion of global export market scale;compared with Turkey and India,China can adapt to the structural shift of global textile garment products better,but recent years have found that the industrial competitiveness effect makes relatively small contributions to our export growth.In accordance with results of the empirical analysis,in the context of the disappearance of our labor cost advantage,as the labor productivity has a relatively great positive impact on our industrial global competitiveness,the influence of costs has been alleviated.Our international competitiveness in the sector can be enhanced by drawing from advanced technologies of other countries,nevertheless,our innovative technology level remains to be strengthened.At the same time,the market size shifts of our exporting countries and regions will greatly influence the international competitiveness of our textile garment industry.