What Opportunities from the “One Belt, One Road” Initiative for Manufacturing? The Case of Hong Kong\u27s Textiles and Clothing Sectors

Past studies have investigated the trade relationship between countries by analysing economic and political related factors using gravity models. Numerous factors have been empirically tested in the literature which are proposed to be important contributors in determining trade flow. This study addresses the research questions, what are the key factors and dimensions that influence bilateral trade. It focuses on identifying the key factors and dimensions for the expansion of Textile and Clothing (T&C) manufacturing by Chinese manufacturers to other countries, in light of China’s recent One Belt One Road (OBOR) initiative. This paper will critically review bilateral trade and international business literature that uses the gravity model from 1960 to 2017 to discuss factors previously investigated by researchers. The review reflects on the factors commonly explored in the literature, but also highlights the absence of sustainability factors given the importance of sustainability and CSR issues in today’s global T&C industry. This study will contribute to the wider literature of international business and trade, particularly for the expansion of Chinese T&C manufacturing to other countries which are promoted through China’s OBOR initiative