Determinants of International Trade Patterns in Textile Products

Abstract

The objective of the research reported in this paper was to investigate the determinants of textile-export performance by using data for major textile-exporting countries. Gross exports and net exports were the two measures of export performance. Multiple-regression analysis was used to investigate the relationship between export performance and a country's resource endowments (physical capital, technological capital, human capital) and industry characteristics (unit labor costs, domestic-apparel production). Cross-section data for 1970, 1975, 1980, and 1985 were used in the analysis. Major findings indicated that countries with more physical capital were more likely to be gross or net textile exporters, whereas countries with higher levels of human capital and more domestic-apparel production were less likely to be gross or net textile exporters. The impact of technological capital varied according to whether a country was a gross or net textile exporter.