The Influence Of Factor Price Distortion On The Export Competitiveness Of China’s Textile And Garment Export Enterprises

Promoting the high-quality development of trade has become an important theme of economic system reform under the current dual-cycle new development pattern.Factor price distortion is the main issue restricting the export competitiveness of China’s textile and garment enterprises.Studying its impact on the export competitiveness of textile and garment enterprises and the path of influence will help create new advantages for the development of the textile and garment industry and further promote the realization of high-quality textile and garment foreign trade.From 2000 to 2022,using factor price,total output,and total export data of China’s textile and garment export enterprises to construct indicators such as factor price distortion,enterprise export competitiveness and total factor productivity,and used multiple regression models to empirically analyze the impact of factor price distortion to export competitiveness on China’s textile and garment industry.The empirical results show that there is a significant negative correlation between the factor price distortion and the export competitiveness of textile and garment enterprises.The total factor productivity is further selected as the mechanism variable to empirically test the effect of factor price distortion on the export competitiveness of China’s textile and garment enterprises.The empirical results show that there is an impact mechanism of factor price distortion-total factor productivity-enterprise export competitiveness.According to the factor price distortion indicators of textile and garment enterprises over the years and the benchmark regression results,the labor price distortion level of China’s textile and garment enterprises is lower than that of capital factor price distortion,and the negative distortion level of labor price is declining,while the negative distortion of capital price is on the rise.The trend does not have a relatively greater negative impact on the export competitiveness of enterprises.From the results of heterogeneity analysis,factor price distortion of textile and garment enterprises in the eastern and central regions has a significant inhibitory effect on export competitiveness,but this effect is not significant in textile and garment enterprises in the western region.In terms of enterprises with different ownership systems,the impact of factor price distortion on the export competitiveness of private enterprises is more significant than that of state-owned enterprises and foreign-funded enterprises.Based on the empirical research conclusions,in order to enhance the export competitiveness of my country’s textile and garment enterprises,cultivate new advantages in the development of the textile and garment industry,and promote the high-quality development of textile and garment foreign trade,we can start by alleviating the distortion of factor prices.By accelerating the process of market-oriented reform of factors,reducing local protection and market segmentation policies,promoting the construction of a unified national market,and promoting multi-party cooperation,we can break through key blocking points for the textile and garment industry to enhance its competitive advantage and achieve a new pattern of smooth double-cycle development.