Pass-Through Analysis Of Cotton Prices
AbstractA common question when analyzing supply chains is how much a change in input costs at one stage in the supply chain affect prices downstream. To address this question, research has been conducted that examines the extent that changes in prices are “passed-through.” Much of the pass-through research that has been conducted has been focused on changes in prices at the beginning of supply chains - at the commodity-level. To date, however, there is no known research analyzing the effect of changes of cotton fiber prices on cotton textile goods, neither at different stages in the cotton supply chain, nor at the retail level. While pass-through analysis of the cotton supply chain presents certain challenges in terms of data collection, it also presents great opportunity in terms of understanding the many relationships involved in the manufacture of cotton apparel. The purpose of this paper is to develop a greater understanding of price relationships throughout the cotton supply chain and to inform interested parties about the extent that changes in cotton prices influence changes in yarn, fabric, and apparel prices. Findings suggest that the sharp increases in cotton fiber prices in the 2010/11 have resulted in increases in yarn and fabric prices, but have yet to influence prices for assembled garments or retail prices for cotton apparel.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania with number 103909.
Date of creation: 2011
Date of revision:
Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
Demand and Price Analysis; Production Economics;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-05-24 (All new papers)
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.