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Journal Article

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Supply chain management, trade gravity model, textiles and clothing, One Belt, One Road


The One Belt, One Road (hereafter OBOR) initiative is a development strategy launched by China in 2015. Its aim is to increase economic co-operation among countries along the China’s Silk Road Economic Belt and 21st Century Maritime Silk Road that connect Asia, Europe and Africa. As one of China’s important economic drivers, Hong Kong’s anticipated gains taking part in this initiative are substantial. This is particularly true for companies in the textiles and clothing (T&C) sectors, as the OBOR initiative offers investment opportunities in developing low-cost production bases in developing countries and promotes global trade. The main objective of this paper is twofold. First, it investigates how Hong Kong can strengthen its “superconnector” role, facilitating sustainable trade and development in the T&C industries among some OBOR countries. Specific measures are identified so that T&C companies in Hong Kong can establish and facilitate technological upgrades and transformation to potential production facilities in some developing countries under the OBOR initiative. This would contribute to the sustainable development of the T&C sectors in Hong Kong. Second, the study extends the gravity trade model to analyze the development of T&C trade patterns between Hong Kong and OBOR countries. Especially it covered some of the key factors not considered in previous studies, such as Logistics Performance Index (LPI), demographical factors, and those related to the business environment and policies. The analysis covers the impacts of country-specific, social, economic and supply chain factors on T&C trade. Based on the results, recommendations are provided to address how Hong Kong helps to facilitate trade and development of the T&C sectors under the OBOR initiative.

Source Publication

Journal of Textile Engineering & Fashion Technology

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