The Global Textile and Apparel Value Chain: From Mexico–US–China Linkages to a Global Approach

The aim of this paper is to analyze the participation in the global textile and apparel value chain with special attention, first, to the case of three dynamic and interrelated economies (Mexico, the United States, and China); and second, to a general approach to a larger sample of countries through...

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Bibliographic Details
Published in:Economies 2022-10, Vol.10 (10), p.258
Main Authors: Rodil-Marzábal, Óscar, Gómez Pérez, Ana Laura, Campos-Romero, Hugo
Format: Article
Language:English
Subjects:
Clothing industry
Costs
developed and developing countries
Developing countries
Division of labor
Econometrics
explanatory factors
Exports
Foreign investments
forward and backward participation
global value chain
Industrial development
International economic relations
International trade
LDCs
Management
Participation
Raw materials
Suppliers
Supply chains
textile and apparel
Textile industry
Textiles
Value added
Value chain
Value creation
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Summary:The aim of this paper is to analyze the participation in the global textile and apparel value chain with special attention, first, to the case of three dynamic and interrelated economies (Mexico, the United States, and China); and second, to a general approach to a larger sample of countries through the analysis of trade in value added. From the descriptive analysis, a high domestic share in each country’s exports is found. However, China is the leading exporter in the industry, accounting for around a third of the domestic value added in the global textile final demand. An econometric estimation has also been carried out to observe the effects of tariffs, FDI, and labor costs on the total and backward participation in the textile GVC. In this case, the sample has been extended to 39 developed and 22 developing countries. The results reveal tariff protection as a determinant of the degree of participation of the sector, especially when backward participation and developing economies are considered. However, FDI and labor costs only show the expected results in the case of developing countries. This may be due to the different tasks performed by developing economies (primarily manufacturing) versus developed economies (branding, design) within the sector’s value chain.
ISSN:2227-7099
2227-7099
DOI:10.3390/economies10100258