This paper employs the gravity model to investigate how the growth of China’s textile and clothing (T&C) exports is dominating the exports of other Asian developing countries over the 1990–2015 period. Aggregate analyses were undertaken, and the endogeneity of Chinese exports were accounted by applying instrumental variables with country fixed effects. It was found that there was a negative impact of China’s emergence on T&C exports on other Asian developing countries. We further explored whether such displacement effect varies across Asian countries and the results showed that amore pronounced effectwas found in low-income countries than high-income ones. Our findings suggest that the export competitiveness of China’s neighbors, i.e. bothmore and less developed Asian countries, are affected by the emergence of China in T&C Trade. However, China’s Belt and Road Initiative (BRI) warrants further research to suggest that once the Initiative goes into full force, collaborative opportunities are available between China and other Asian developing counties. The implications of China’s BRI are also discussed.

Item Type:	Research Book Chapter
Keywords:	international trade, international business, gravity model, panel data analysis, Asia, textile, clothing
Research Division:	Commerce, Management, Tourism and Services
Research Group:	Strategy, management and organisational behaviour
Research Field:	International business
Objective Division:	Economic Framework
Objective Group:	International trade policy
Objective Field:	Trade policy
UTAS Author:	Nguyen, H-O (Associate Professor Oanh Nguyen)
ID Code:	145486
Year Published:	2020
Deposited By:	Maritime and Logistics Management
Deposited On:	2021-07-22
Last Modified:	2021-09-24
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