Gradient Transfer of China’s Textile Industry: The Perspective from TFP Comparative Advantage

Abstract

AbstractAs viewed from the TFP comparative advantage of textile industry, this paper analyzed the multiregional transfer of textile industry in China’s three regions. Based on the data of China’s manufacturing firms in 2001-2007, this article measured industry TFP with a semi-parametric estimation method. Through the work for comparative analysis of TFP between textile industry and other industries in China’s three regions, we find that the TFP comparative advantage in eastern region has declined obviously since 2003, whereas ascended in central and western regions; namely, the internal motivation mechanism of gradient transfer has already formed for China’s textile industry. Furthermore, in order to accelerate the mass gradient transfer of textile industry smoothly, some effective policies concentrated on firms are still needed to remove obstacles in the way.KeywordsTextile Industry TFPRegional DisparitiesComparative AdvantageGradient Transfer