The Competitiveness of Korean and Chinese Textile Industry: The Diamond Model Approach

This paper attempts to outline the competitiveness in textile industry in Korea and China, currently by looking closely at specific area: the textile firms in the Yangtze River Delta in China and the textile firms in Daegu, Korea. This paper will substitute the firms’ competitiveness for their productivity. This paper will use adjusted Porter’s Diamond model with microeconomic factors instead of macroeconomic factors which are originally suggested in the model. With Diamond Model (DM), this paper will compare the competitiveness of the textile industry between Korea and China. Furthermore, it will find out main factors which influence their competitiveness and origin of the differences, and illuminate how to improve it.