Research on the Influence of the Mechanism of Technology Convergence on China’s Textile Industry Performance

Abstract

Technology convergence (TC) can integrate new technologies, methods and processes into traditional industries. It can accelerate the transformation and upgrading of these industries, and is of great significance to their development. The purpose of our research is to reveal the impact of the mechanism of technology integration on the textile industry and conduct empirical research. This study firstly builds the linear and non-linear mechanism of the impact of TC on the development of China’s textile industry. Empirical research is conducted based on the panel fixed effect model and panel threshold model. The results are as follows: (1) TC significantly contributes to the performance of China’s textile industry, as endogenous convergence can significantly promote industrial performance, while the effect of exogenous convergence is insignificant; (2) TC has a double-threshold effect, with its coefficient being largest at a medium level; and (3) TC has an enterprise scale threshold, in which its effect indicates that only when the scale exceeds the threshold can TC more effectively foster industry performance. The significance of these results for the development of China’s textile industry is that they strengthen the level of TC for it to be convergent with emerging industries, as well as increase the size and absorptive capacity of enterprises.