Determinants of U.S. Textile and Apparel Import Trade



Consequently, U.S. importers of textile and apparel products have increased their imports over
time (see Figure 1). The major sources of textile imports for the U.S. are China, Pakistan, India,
Mexico, Taiwan, South Korea, Thailand, Indonesia, Japan, Hong Kong, Philippines, Canada, and
Sri Lanka (U.S. International Trade Administration).

According to Ikenson (2005), the time has come for the Bush administration to cut the
textile industry lobby’s cord. For years, the industry has been a thorn in the side of policymakers
attempting to do the right thing by liberalizing trade. Trade agreements and other trade
liberalizing initiatives have had to be abandoned, curtailed, or saddled with red tape to
accommodate the industry’s unwillingness to compete. Meanwhile, the industry complex has
used threats and extortions to achieve its objective of protectionism, often saddling consumers
with stealth taxes, and dragging down market prospects for other industries.

Trade flows are generally determined on the basis of the principle of comparative
advantage in a free trade system (Salvatore, 2004; Koo and Karemera, 1991). Since trade flows
of cotton and textiles have been distorted by government interventions, determinants of trade
flows of textile and apparel and their economic effects are not clearly understood. Accordingly,
the objectives of this study are to evaluate factors explaining the pattern of textile and apparel
imports into the U.S. from key trading partners and to derive implications from such textile and
apparel trade. The rest of the paper is organized as follows: in the first section, we provide a
theoretical justification for using the gravity model in determining trade flows of textiles and
apparel. In the second section, we derive the reduced form of the gravity model. In the third
section, we provide information on data sources and estimation procedure. The fourth section
presents the results and the fifth section offers concluding remarks.



More intriguing information

1. THE UNCERTAIN FUTURE OF THE MEXICAN MARKET FOR U.S. COTTON: IMPACT OF THE ELIMINATION OF TEXTILE AND CLOTHING QUOTAS
2. On the job rotation problem
3. Testing Hypotheses in an I(2) Model with Applications to the Persistent Long Swings in the Dmk/$ Rate
4. Land Police in Mozambique: Future Perspectives
5. The name is absent
6. How do investors' expectations drive asset prices?
7. Skills, Partnerships and Tenancy in Sri Lankan Rice Farms
8. The economic value of food labels: A lab experiment on safer infant milk formula
9. On the Existence of the Moments of the Asymptotic Trace Statistic
10. Heterogeneity of Investors and Asset Pricing in a Risk-Value World
11. Gerontocracy in Motion? – European Cross-Country Evidence on the Labor Market Consequences of Population Ageing
12. The name is absent
13. Uncertain Productivity Growth and the Choice between FDI and Export
14. Target Acquisition in Multiscale Electronic Worlds
15. The name is absent
16. The name is absent
17. Stable Distributions
18. Naïve Bayes vs. Decision Trees vs. Neural Networks in the Classification of Training Web Pages
19. The name is absent
20. Regional differentiation in the Russian federation: A cluster-based typification