Looking back to look forward: Setting future research agenda for international business in textiles and clothing industry

© 2019 Jungseok Research Institute of International Logistics and Trade All rights reserved. Since its development by Tinbergen (1962), the gravity model of international trade has widely been applied to analyse the effect of various factors on trade relationships between countries. Past studies on trade gravity vary not only in the mix of model variables but also in how they have come into the analysis. This study reviews existing literature on bilateral trade with an aim to identify influential predictors such as changes of trade policy and national development strategy and highlight important yet understudied factors such as transport and logistics infrastructure, and sustainable development. To demonstrate the needs to examine these critical factors across industry sectors, the study presents the case of textiles and clothing (T&C) production and trade between China and its trading partners as an illustration. Through the literature review, it shows how the gravity model can be applied to address current issues in international trade arena such as the potential trade war between the US and China, China\u27s Belt and Road Initiative (BRI), and other important factors shaping global T&C trade. This study offers future research directions for analysis of global trade in the T&C industry and contributes to the wider literature of international business and trade

Looking back to look forward: setting future research agenda for international business in textiles and clothing industry

Since its development by Tinbergen (1962), the gravity model of international trade has widely been applied to analyse the effect of various factors on trade relationships between countries. Past studies on trade gravity vary not only in the mix of model variables but also in how they have come into the analysis. This study reviews existing literature on bilateral trade with an aim to identify influential predictors such as changes of trade policy and national development strategy and highlight important yet understudied factors such as transport and logistics infrastructure, and sustainable development. To demonstrate the needs to examine these critical factors across industry sectors, the study presents the case of textiles and clothing (T&C) production and trade between China and its trading partners as an illustration. Through the literature review, it shows how the gravity model can be applied to address current issues in international trade arena such as the potential trade war between the US and China, China’s Belt and Road Initiative (BRI), and other important factors shaping global T&C trade. This study offers future research directions for analysis of global trade in the T&C industry and contributes to the wider literature of international business and trade

The Belt and Road Initiative\u27s impact on Textile and Clothing Supply Chains in Asia: Views from Hong Kong Industrial Stakeholders

The global supply chains in the Textile and Clothing (T&C) industry have been shaping by various forces, among them economic development policy is one of the strongest. Amid the rollout of the Chinese’s new national development strategy—Belt and Road Initiative (BRI), major T&C companies see both opportunities and challenges in optimizing and restructuring the networks of their production facilities. One notable and growing trend associated with the BRI is the relocation of T&C manufacturing from China to ASEAN countries and establishment of new factories along the Belt and Road (B&R). Much has been examined about the BRI at the national level, yet little is known about how companies in the T&C industry have responded to this grand economic development plan. This study aims to explore from industrial stakeholders’ perspectives, the factors that drive and hinder synergistic, mutually beneficial development of T&C production and trade among the B&R countries. To achieve this aim, it addresses the following questions: what are the challenges and opportunities faced by T&C companies establishing or relocating production to B&R countries, and what tangible actions have been taken by them? In-depth interviews were carried out with ten industry professionals from Hong Kong-based companies and government institutions involved with T&C trade in the Asian B&R countries, such as Bangladesh, Cambodia, Indonesia and Myanmar. The findings of this study highlight the importance of pursuing sustainable development. On one hand, there is full of potential for T&C companies to achieve cost-effective production along the B&R countries through harnessing economic policy and transport infrastructure that facilitate trade. On the other hand, T&C companies see challenges in managing culturally diversity in the workplace as opportunities for pursuing corporate development in a socially responsible manner. In sum, this study reveals mutual supportiveness of economic and social aspects of T&C production and trade

Improving the Energy Efficiency of Petrochemical Plant Operations: A Measurement and Verification Case Study Using a Balanced Wave Optimizer

The Chinese petrochemical industry is facing pressure to meet strict targets of energy consumption and carbon emission reductions. Water pumps are the primary equipment used in most chemical and agrochemical industries sectors since water is commonly used for cooling and heating purposes, but these pumps also consume a large amount of energy. Other uses of water pumps in these industries include producing steam for heating, preparing reaction media or absorptive reagents, rinsing products, and distilling. As for the electrical components of the water pump systems, current technologies of variable frequency drives and superconducting transmission lines are unable to increase the energy efficiency of these systems with a fixed load. However, the Balanced Wave Technology (BWT) is offered as a solution to overcome these limitations. In this report, a case study using a BWT optimizer is conducted on a closed loop water circulation system. Two BWTs are added to the individual motor-controlled section of each pump that is being used on the switchboard. For the first time, a detailed example was provided on how to implement option B of the International Performance Measurement and Verification Protocol (IPMVP) in China by evaluating the performance of BWT as an energy conservation measure. The evaluated periods included those of the baseline, post-installation, and actual performance of the optimizers. An average saving of energy of about 10.46% is recorded in a 5-week reporting period. On this basis, that annual electricity saved is estimated to be 66,447.18 kWh, which is equivalent to the emission of 68.94 metric tons of CO2e. This case study demonstrates in detail how option B of IPMVP can be implemented for BWTs applied on pumping systems. In addition to petrochemical production plants, other industries like textile and clothing sections, which are heavy users of water and electrical energy with fixed loads in the production processes of raw materials, fiber, yarn, and fabric, as well as textile-dyeing and final treatment, could benefit from applying this new technology

What are the opportunities for manufacturing in the “one belt one road” initiative? The case of Hong Kong’s textiles and clothing sector

The One Belt, One Road (hereafter OBOR) initiative is a development strategy launched by China in 2015. Its aim is to increase economic co-operation among countries along the China’s Silk Road Economic Belt and 21st Century Maritime Silk Road that connect Asia, Europe and Africa. As one of China’s important economic drivers, Hong Kong’s anticipated gains taking part in this initiative are substantial. This is particularly true for companies in the textiles and clothing (T&C) sectors, as the OBOR initiative offers investment opportunities in developing low-cost production bases in developing countries and promotes global trade. The main objective of this paper is twofold. First, it investigates how Hong Kong can strengthen its “superconnector” role, facilitating sustainable trade and development in the T&C industries among some OBOR countries. Specific measures are identified so that T&C companies in Hong Kong can establish and facilitate technological upgrades and transformation to potential production facilities in some developing countries under the OBOR initiative. This would contribute to the sustainable development of the T&C sectors in Hong Kong. Second, the study extends the gravity trade model to analyze the development of T&C trade patterns between Hong Kong and OBOR countries. Especially it covered some of the key factors not considered in previous studies, such as Logistics Performance Index (LPI), demographical factors, and those related to the business environment and policies. The analysis covers the impacts of country-specific, social, economic and supply chain factors on T&C trade. Based on the results, recommendations are provided to address how Hong Kong helps to facilitate trade and development of the T&C sectors under the OBOR initiative

The Belt and Road Initiative’s impact on Textile and Clothing Supply Chains in Asia: Views from Hong Kong Industrial Stakeholders

The global supply chains in the Textile and Clothing (T&C) industry have been shaping by various forces, among them economic development policy is one of the strongest. Amid the rollout of the Chinese’s new national development strategy—Belt and Road Initiative (BRI), major T&C companies see both opportunities and challenges in optimizing and restructuring the networks of their production facilities. One notable and growing trend associated with the BRI is the relocation of T&C manufacturing from China to ASEAN countries and establishment of new factories along the Belt and Road (B&R). Much has been examined about the BRI at the national level, yet little is known about how companies in the T&C industry have responded to this grand economic development plan. This study aims to explore from industrial stakeholders’ perspectives, the factors that drive and hinder synergistic, mutually beneficial development of T&C production and trade among the B&R countries. To achieve this aim, it addresses the following questions: what are the challenges and opportunities faced by T&C companies establishing or relocating production to B&R countries, and what tangible actions have been taken by them? In-depth interviews were carried out with ten industry professionals from Hong Kong-based companies and government institutions involved with T&C trade in the Asian B&R countries, such as Bangladesh, Cambodia, Indonesia and Myanmar. The findings of this study highlight the importance of pursuing sustainable development. On one hand, there is full of potential for T&C companies to achieve cost-effective production along the B&R countries through harnessing economic policy and transport infrastructure that facilitate trade. On the other hand, T&C companies see challenges in managing culturally diversity in the workplace as opportunities for pursuing corporate development in a socially responsible manner. In sum, this study reveals mutual supportiveness of economic and social aspects of T&C production and trade

Belt and Road Initiative : Collaboration for Success

“Belt and Road Initiative – Collaboration for Success” is part of the Textile Science and Clothing Technology book series (TSCT), which are a series of studies that analyze the critical factors that promote and impede textile & clothing (T&C) production and trade in the Belt & Road (B&R) countries, and the forces that drive the restructuring and transforming of global T&C supply chains and operations in the B&R context. The book also offers insights into the challenges and opportunities for T&C manufacturing in the B&R countries through interviews with T&C experts, and examines how Hong Kong can strengthen its “super-connector” role by facilitating sustainable trade and development in the T&C industries, as well as discusses the impact of global trade wars on T&C trade. The studies presented in this book involve topics that range from the macro-economy to international business environment and strategies, logistics and supply chain, policy changes and sustainability

Determinants of China\u27s textile exports: an analysis by gravity model

An abundant supply of raw materials and low-cost labour made China the world\u27s largest producer and exporter of textile products since 2000. The value of China\u27s textile exports to the world amounted to approximately US$ 34 billion in 2004, which represented about 16% of the world\u27s total textile exports. Taking the data from 1985 to 2004, the country-specific factors for textile exports between China and its top 10 trading partners were analyzed statistically using the gravity trading model to identify effects of the major determinants that underpin the textile exports of China. The result renders robust support for the gravity model and shows that GDP, real exchange rate, common membership of free trade agreement for bilateral trading partners, per capita GDP and population growth rate of the importers, all these factors, have shown statistical significance on the China\u27s textile exports. On the contrary, geographical distance has no significant effect on textile trading