What Explains the International Location of Industry? -The Case of Clothing
Sammanfattning
The clothing sector has been a driver of diversification and growth for countries that
have graduated into middle income. Using a partial adjustment panel data model for 61
countries 1975-2000, we investigate the global international location of clothing production
by using a combination of variables suggested by the Heckscher-Ohlin theory and
the New Economic Geography (NEG) theory. Our Blundell-Bond system estimator results
confirm that the NEG variables do help explain the location of the clothing industry,
and point to that convergence is not as inevitable as sometimes assumed. We find that
closeness to various intermediates such as low-cost labor and textile production has
strong effects on output. Factor endowments and closeness to the world market have inverted
U-shaped effects. This is expected since above a certain level several other sectors
benefit even more from closeness and factor endowments, driving resources away from
the clothing industry.
Samlingar
Fil(er)
Datum
2009-12-21Författare
Tengstam, Sven
Nyckelord
global clothing industry
new economic geography
comparative advantages
industrial agglomeration
Publikationstyp
report
ISSN
1403-2465
Serie/rapportnr.
Working Papers in Economics
423
Språk
eng