EVALUATING ECONOMIES OF SCALE IN THE TEXTILE, APPAREL, AND ACCESSORIES INDUSTRY

This study investigates economies of scale in the textile, apparel, and accessories industry from 2015 to 2019, using a translog cost function model to evaluate the cost efficiencies of 35 textile, apparel, and accessories companies. Company size was measured by total assets managed. We also analyze...

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Bibliographic Details
Published in:International journal of business and economics perspectives 2020-09, Vol.15 (1), p.32
Main Authors: Bennur, Shubha, Malhotra, D.K
Format: Article
Language:English
Subjects:
Clothing accessories
Economies of scale
International economic relations
Textile industry
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Summary:This study investigates economies of scale in the textile, apparel, and accessories industry from 2015 to 2019, using a translog cost function model to evaluate the cost efficiencies of 35 textile, apparel, and accessories companies. Company size was measured by total assets managed. We also analyzed the source of cost efficiencies with cost measured by cost of goods sold, other operating costs, and selling, as well as general and administrative expenses concerning the company's total assets. On average, larger companies had lower cost of goods sold and operating expenses. Also, cost efficiencies were not equally distributed; some companies showed substantial cost efficiencies while others exhibited none or even diseconomies of scale as size increased.
ISSN:1931-907X