Abstract:

China's export of textile and clothing possesses a large share both in its domestic export and in the inter- national export of textile and clothing.The factors that effect China's export of textile and clothing are analyzed here by means of applying a co-integration test.The conclusion indicates that domestic supply is the most remarkable reason for a long-term increase of export, and trade partner countries'GDP and China's NEER are relatively less important.In accordance with the conclusion China should enforce its long-term competitive advantages, improve its skills of resolving trade frictions, and quicken its reform on the exchange rate system.

Key words: textile and clothing, export, domestic supply, exchange rate