Agglomeration is an important characteristic in China’s textile industry development. But regional textile industry isseriously unbalanced, only eastern location entropy (LQ) is greater than 1 and is the highest of all, followed by thecentral, western and north-eastern regions. Total factor productivity (TFP) is an important indicator to measure theeconomic growth efficiency. The average annual growth rate (AAGR) of eastern textile industry TFP is the least andcentral TFP growth rate is the fastest. In order to investigate the relationship between agglomeration and TFP of China’stextile industry, especially at region level, this paper applies panel model to study how agglomeration influences TFPduring 2005–2018. The results show that increasing agglomeration degree restrains the TFP growth of China’s textileindustry. The coefficients of LQ on textile industry in China and four regions are all negative. There exists crowded effectin eastern textile industry. It has not formed the significant agglomeration effect in western and north-eastern textileindustry for very low agglomeration degree. So it implies that eastern textile industry can accelerate the implementationof industrial transfer and structural adjustment to lower agglomeration and maintain sustained profitability of textileenterprises. Western textile industry can strengthen agglomeration by undertaking industrial transfer from eastern regionto form agglomeration effect to promote TFP growth.
Is China’s textile industry (CTI) still a laboor-intensive one? To answer this question, this study measures the capital-labour intensity and technology intensity of CTI and its sub-sectors during 2006-2018, then applies factor intensity classification and cluster analysis to identify their industrial attributes. The results show that CTI and its sub-sectors are still the labour- and non-technology-intensive. All the indexes of capital-labour intensity and technology intensity of CTI and its sub-sectors are below 100, lower than the average of industry sectors, indicating that they are not separate from the category of labour-intensive industry and still heavily dependent on labour. And cluster analysis verifies the industrial classification results. So CTI still needs to keep on increasing its capital intensity and technology intensity to achieve the goal of industrial transformation and upgrading in the future.
In this study, the Input-Output Structural Decomposition Analysis (I-O SDA) method is adopted to analyze the structural change in China’s textile industry during 1997-2012 and to measure the contribution rate of the growth factors (consumption, investment, inventory, exports and imports) affecting change in its gross output. Then the key factors and main driving forces promoting textile industry development are figured out. The results show that China’s textile industry has experienced great change both in scale and structure. Among the growth factors, the contribution rate of exports is the largest, followed by investment, consumption, imports and inventory. The textile industry still relies heavily on exports, investment and consumption, while the contribution rate of imports is relatively small. In addition, technological change makes a positive contribution with technological innovation. Among the industrial sectors, the cotton & chemical fibre textile industry holds dominance, with the textile manufactured goods industry exhibiting tremendous development, the growth of the knitted textile industry fluctuating, and the wool textile industry and hemp & silk textile industry progressing slowly. Finally relevant policy suggestions are proposed to promote the balanced and coordinated development of China’s textile industry.