Determinants of Foreign Trade in China's Textile Industry

The article sets out to examine whether the volume of bilateral trade between China and 40 of its trading partners in the up-, mid-, and downstream segments of the textile industry is affected by factors such as GDP, per capita GDP, geographic distance, FDI outflows and inflows, openness to trade, and bilateral investment treaties. The significant negative correlation between import/export volume and distance reflects the close trading relations between China and the other countries of East Asia. A home market effect is evident for downstream exports. China's FDI outflows stimulate growth in midstream textile product exports.