Apparel import decisions in the United States and Japan based on demand theory

Abstract

This research investigated factors that determine apparel import demand in the United States and Japan based on demand theory and industry and trade contexts of apparel trade. More specifically, (a) product price and income based on demand theory, (b) labour cost and lead time based on the apparel industry context and (c) tariff, quota and exchange rates based on the trade context were used to estimate apparel import demand in the United States and Japan between 1974 and 2004 using multiple regression analysis.