Is China’s Textile Industry Still a Labour-Intensive Industry?

Abstract

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.