Analysis of the Competitiveness and Complementarity of Footwear Trade Between China and Indonesia

Abstract

This research analyzes the competitiveness and complementarity of footwear trade between China and Indonesia, two major players in the global footwear market. The research examines the dynamics of the footwear trade between these countries, focusing on the comparative advantages, trade competitiveness, and market complementarities. China, as the dominant footwear producer, has faced challenges such as rising labor costs and trade tensions, leading to a decline in its global market share. In contrast, Indonesia has been capitalizing on its lower labor costs and government incentives to increase its export capacity, particularly in leather and textile footwear. By analyzing trade data from 2005 to 2023, the study identifies key trends in export values and the structure of trade between the two nations, illustrating how their distinct strengths create opportunities for collaboration. The findings offer valuable insights for policymakers and stakeholders seeking to enhance bilateral trade strategies and strengthen the competitiveness of both nations in the evolving global footwear industry.