Determinants of Competitiveness: Observations in China's Textile and Apparel Industries

Chi-Keung Lau, Kin-Man To, Zhiming Zhang and Jing Chen

China & World Economy, 2009, vol. 17, issue 2, pages 45-64

Abstract: This paper attempts to explore key determinants of competitiveness in the textile and apparel industries, with special reference to Chinese Mainland. The authors conduct a survey that is designed to use productivity, supply-side and demand-side determinants to measure enterprises' competitiveness. The collected survey data is then analyzed using factor analysis to capture the related determining factors indicative of competitiveness at the enterprise level. The findings demonstrate that government policies and related industry infrastructure are the most important determinants of competitiveness in the textile and apparel industries, followed by domestic demand. This suggests that the improvement of industry infrastructure can foster industry performance, and that more resources should be endowed to enhance the domestic business competitiveness of local enterprises. The development of domestic demand will foster the competitiveness of the textile and apparel industries on a more sustainable basis. Copyright (c) 2009 The Authors Journal compilation (c) 2009 Institute of World Economics and Politics, Chinese Academy of Social Sciences.

Date: 2009

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