Comparative advantages of the Indian and Chinese apparel industries: An analysis of the global value chain

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Elena Karpova, Putman & Hayes Distinguished Professor (Creator)
Institution
The University of North Carolina at Greensboro (UNCG )
Web Site: http://library.uncg.edu/

Abstract: The research investigated comparative advantages of the Indian and Chinese apparel industries by evaluating each industry's performance. The investigation employed the global value chain framework. A wide range of secondary data were used from the Indian, Chinese and international databases. The data were synthesised and analysed at the level of each component of the global value chain: textile materials supply, manufacturing, transportation and logistics services, and marketing. The study revealed that the Chinese apparel industry had comparative advantages in the following: material supply in the MMF sector; full-package production and lean/agile manufacturing; and efficient transportation and logistics services. The Indian apparel industry had comparative advantages in: lower labour costs, production differentiation and specialisation, flexible manufacturing, and marketing. Disadvantages in the Chinese and Indian apparel industries were also identified respectively. Industrial upgrading opportunities and recommendations for each industry's future development were formulated. Implications for potential trends of the global apparel industry were also explored.

Additional Information

Publication
International Journal of Fashion Design, Technology and Education, 4(3), 197-211.
Language: English
Date: 2011
Keywords
China, India, comparative advantage, global value chain, industrial upgrading

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