| dc.description.abstract | Trade liberalization ACFTA (ASEAN-China Free Trade Agreement) that has been fully implemented on 2010 have implied the ASEAN region and China’s trade pattern. China and ASEAN 7 countries as the major exporter of world textile and clothing have to compete and maintain the industry of each country in order not displaced imported goods from foreign. This is important to analize each country’s comparative and competitive advantages as well as determinants of IIT between ASEAN 7 and China textile and clothing trade as the implications of ACFTA. The results shows that China has the highest comparative and competitive advantages, and become the most dominated country in the ACFTA textile and clothing market. This is indicated by the value of Revealed Comparative Advantages Index and Trade Specialization Index in China that tend to be positive and higher than the ASEAN 7 countries. ASEAN 7 and China textile and clothing bilateral trade flow in general are 46% at the weak level of integration based on the level of IIT calculation. Country spesific determinants of IIT from the econometric result are the average GDP (AVGDP), exchange rate (ERP), Foreign Direct Investment (FDI), the differences of countries exchange rate fluctuations (FER), and weighted distance (WDIST). | en |
