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

Abstract

This research aims to analyze the competitiveness and complementarity of the garment trade between China and Indonesia. Using trade data from UN COMTRADE, this study outlines the characteristics and dynamics of garment trade from three main aspects: competitiveness, complementarity, and proximity of trade relations through in-depth and comprehensive analysis. The Net Export Index (NEI) and Revealed Comparative Advantage (RCA) values for garment exports from China to Indonesia have fluctuated over the years, indicating changing trade dynamics. The Intra-Industry Trade Index (IIT) and Trade Complementarity Index (TCI) reveal the degree of trade cooperation and import-export structure compatibility between the two countries. Market diversification strategies may assist China and Indonesia to expand their export reach and reduce dependence on traditional markets. Trade Convergence Divergence (TCD) analysis shows the evolving trade pattern between the two countries, with a trend towards a global trade pattern. To improve competitiveness, Indonesia needs to boost product quality and production efficiency through technology investment and labor training. Both countries also need to expand their market reach by seeking new marketsto reduce dependence on traditional markets.