The Impact of Rising Costs on Labor-intensive Industries: Based on Ningbo Textile and Garment Industrial Cluster
Ruan Jianqing1, Zhao Lühang1, Zhao Zuoxiang2, Li Jiewei3
1.China Academy for Rural Development, Zhejiang University, Hangzhou 310058, China 2.Institutes of Science and Development, Chinese Academy of Sciences, Beijing 100190, China 3.Institute of New Structural Economics, Peking University, Beijing 100871, China
Abstract Labor shortage and sharp increase in labor costs have had a great impact on China’s traditional labor-intensive industries. The competitiveness of traditional manufacturing enterprises which have long relied on cheap labor has declined in China’s eastern areas. Facing the new economic normal, how should the traditional labor-intensive industries like textiles and clothing industry deal with it? As one of the most important textile and garment production bases in China, Ningbo occupies an important position in the textile and garment market both at home and abroad. Discussing the development of Ningbo textile and garment industrial cluster and the coping strategies of enterprises is of practical significance to the study of the transformation and upgrading and industrial transfer of traditional labor-intensive industries. Based on the case of Ningbo textile and garment industry cluster and two representative enterprises, this paper analyzes the strategies implemented by different enterprises in the face of rising costs.The study found that Ningbo textile and garment industry cluster is currently facing problems such as labor shortage, rapid rise of labor cost, increasing competitive pressure at home and abroad and so on. In order to deal with these problems, Ningbo textile and garment enterprises, based on their own business, have been working on management improvements in technology upgrading, branding and diversification strategies, transfering to less developed countries or regions and other strategies to reduce the business risks caused by rising costs. At the same time, this paper compares the conditions for enterprises to transfer to central and western China and other developing countries from the aspects of labor cost, tariff and terms of trade, supporting facilities and business environment. Overall, industrial transfer can alleviate the pressure brought to enterprises by rising labor prices and potential trade barriers. However, the deficiencies in labor quality, supporting facilities and business environment in central and western China and other developing countries have increased the management cost and logistics cost of enterprises. In addition, this paper further discusses the development status and transformation path of different textile and garment enterprises, and finds that in addition to upgrading to both ends of the “smile curve”, the technological progress and innovation in the processing trade link are of great significance to the development of enterprises and the evolution of clusters.In view of the above conclusions, this paper gives corresponding policy suggestions: the local government of traditional labor-intensive industrial areas should encourage enterprises to transfer low value-added links to high value-added links, and continuously improve their independent innovation ability. The local government of the industrial undertaking place should improve the government and business environment and improve the supporting facilities.
Ruan Jianqing,Zhao Lühang,Zhao Zuoxiang等. The Impact of Rising Costs on Labor-intensive Industries: Based on Ningbo Textile and Garment Industrial Cluster[J]. JOURNAL OF ZHEJIANG UNIVERSITY, 2021, 51(6): 119-133.
1 Zhang X.， Yang J. & Wang S.， “China has reached the Lewis turning point，” China Economic Review， Vol. 22， No. 4 （2011）， pp. 542-554. 2 Cai F.， “Demographic transition， demographic dividend， and Lewis turning point in China，” China Economic Journal， Vol. 3， No. 2 （2010）， pp. 107-119. 3 Wang M.， “The rise of labor cost and the fall of labor input： has China reached Lewis turning point，” China Economic Journal， Vol. 3， No. 2 （2010）， pp. 137-153. 4 Wang J. & Zhong X.， “Has the Lewis turning point arrived in China？—a theoretical analysis and international experience，” Social Sciences in China， No. 3 （2012）， pp. 81-100. 5 蔡宏波、陈昊： 《外包与劳动力结构——基于中国工业行业数据的经验分析》，《数量经济技术经济研究》2012年第12期，第53-65页。 6 童玉芬： 《人口老龄化过程中我国劳动力供给变化特点及面临的挑战》，《人口研究》2014年第2期，第52-60页。 7 郭凯明、余靖雯、龚六堂： 《计划生育政策、城镇化与经济增长》，《金融研究》2015年第11期，第47-63页。 8 史桂芬、黎涵： 《人口迁移、劳动力结构与经济增长》，《管理世界》2018年第11期，第174-175页。 9 阮建青、石琦、张晓波： 《产业集群动态演化规律与地方政府政策》，《管理世界》2014年第12期，第79-91页。 10 原小能、唐成伟： 《劳动力成本、交易成本与产业结构升级》，《浙江大学学报（人文社会科学版）》2015年第5期，第133-143页。 11 肖文、韩沈超： 《地方政府效率变动对企业“走出去”的影响——基于2004—2012年省级面板样本的检验》，《浙江大学学报（人文社会科学版）》2016年第1期，第184-199页。 12 夏春玲、刘霞玲、林建萍等： 《宁波纺织服装产业发展报告》，北京：中国纺织出版社，2016年。 13 中国纺织工业联合会编： 《2019/2020中国纺织工业发展报告》，北京：中国纺织出版社，2020年。 14 高翔、黄建忠、袁凯华： 《中国制造业存在产业“微笑曲线”吗？》，《统计研究》2020年第7期，第15-29页。 15 倪红福： 《全球价值链中产业“微笑曲线”存在吗？——基于增加值平均传递步长方法》，《数量经济技术经济研究》2016年第11期，第111-126页。 16 潘文卿、李跟强： 《中国制造业国家价值链存在“微笑曲线”吗？——基于供给与需求双重视角》，《管理评论》2018年第5期，第19-28页。 17 王茜： 《中国制造业是否应向“微笑曲线”两端攀爬——基于与制造业传统强国的比较》，《财贸经济》2013年第8期，第98-104页。 18 郑健壮、朱婷婷、郑雯妤： 《价值链曲线真的是“微笑曲线”吗？——基于7个制造业细分行业的实证研究》，《经济与管理研究》2018年第5期，第61-68页。
2021, Vol. 51 
