Production costs, scale economies, and technical change in U.S. textile and apparel industries.: An article from: Atlantic Economic Journal

This digital document is an article from Atlantic Economic Journal, published by Thomson Gale on June 1, 2005. The length of the article is 5876 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the author: The elimination of quotas in textiles and apparel poses new threats from import competition. To survive, the sectors need to find least-cost methods of production. The production-cost structure of the U.S. textile and apparel industries is examined using a dual cost framework. A translog cost function is used to measure substitution elasticities between inputs, scale economies, and the nature of technical change. The scope for factor substitution in textiles remains limited with all substitution elasticities being less than unity. Labor and materials are complements in apparel production, but there is evidence of substitution between capital and labor. The rate of technical change is higher in textiles than in apparel. Given the intense import competition from low wage countries, in both industries, technical progress is labor saving. Overall, economies of scale are larger in apparel; however, scale economies have continued to increase in textiles. (JEL L10, L23, L67)

Citation Details
Title: Production costs, scale economies, and technical change in U.S. textile and apparel industries.
Author: Anusua Datta
Publication:Atlantic Economic Journal (Magazine/Journal)
Date: June 1, 2005
Publisher: Thomson Gale
Volume: 33 Issue: 2 Page: 201(13)

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