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“Flying geese” in China: The textile and apparel industry's pattern of migration

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  • Ruan, Jianqing
  • Zhang, Xiaobo

Abstract

China has large regional variations in both factor endowments and levels of economic development. In principle, some industrial enterprises will relocate to the inland regions from the coastal regions to take advantage of lower wage rates and land prices, provided that the regions are different enough. However, few studies have empirically tested whether this kind of “flying geese” pattern of domestic industrial relocation has occurred on the ground or not. Using data from the textile and apparel industry from 1998 to 2011, this paper shows the existence of the “flying geese” pattern of industrial relocation. Data show that before around 2005, the textile and apparel industry was clustered in the eastern region of China, but it has since shifted toward the central and western regions.

Suggested Citation

  • Ruan, Jianqing & Zhang, Xiaobo, 2014. "“Flying geese” in China: The textile and apparel industry's pattern of migration," Journal of Asian Economics, Elsevier, vol. 34(C), pages 79-91.
    • Handle: RePEc:eee:asieco:v:34:y:2014:i:c:p:79-91
    DOI: 10.1016/j.asieco.2014.06.003
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    3. Miao ZHANG & Xin Xin KONG & Santha Chenayah RAMU, 2015. "The Transformation of the Clothing Industry in China," Working Papers DP-2015-12, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. Junqian Xu & Yong Liu & Liling Yang, 2018. "A Comparative Study of the Role of China and India in Sustainable Textile Competition in the U.S. Market under Green Trade Barriers," Sustainability, MDPI, vol. 10(5), pages 1-21, April.

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    More about this item

    Keywords

    Industrial relocation; “Flying geese” hypothesis; Textile and apparel industry; Labor-intensive industries;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment

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