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Abstract

This paper examines the effects of distribution channels on demand for apparel, home textiles and other textiles (such as shoes) in urban China. The estimation procedure we use in this study is implemented in three steps. First, we estimate the price/unit value information; second, we estimate the parameters for the demand systems based on QAIDs model; third, we use the J-test and determine the best suitable model for the data set. The results indicate that households spend more on apparel than home textiles and other textile products such as shoes if they purchase textile products from small stores. It also indicates that they would spend more on home textiles and shoes if they purchase from chain stores and supermarkets.

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File URL: http://purl.umn.edu/126354
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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 126354.

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Date of creation: 2012
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Handle: RePEc:ags:iaae12:126354

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Related research

Keywords: Chinese Textile Demand; Distribution Channels; Price and Income; Agribusiness; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; C52; D12; D13;

Find related papers by JEL classification:

• C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
• D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
• D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

This paper has been announced in the following NEP Reports:

• NEP-AGR-2012-07-23 (Agricultural Economics)
• NEP-ALL-2012-07-23 (All new papers)

References

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1. Irene Brambilla & Amit Khandelwal & Peter Schott, 2007. "China's Experience Under the Multifiber Arrangement (MFA) and the Agreement on Textiles and Clothing (ATC)," NBER Working Papers 13346, National Bureau of Economic Research, Inc.
   
   • Irene Brambilla & Amit K. Khandelwal & Peter K. Schott, 2010. "China's Experience under the Multi-Fiber Arrangement (MFA) and the Agreement on Textiles and Clothing (ATC)," NBER Chapters, in: China's Growing Role in World Trade, pages 345-387 National Bureau of Economic Research, Inc.
2. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
   
   • Banks, J & Blundell, R & Lewbel, A, 1997. "Quadratic engel curves and consumer demand," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
3. Angus Deaton & Alessandro Tarozzi, 2000. "Prices and poverty in India," Working Papers 213, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
4. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
5. Pollak, Robert A & Wales, Terence J, 1978. "Estimation of Complete Demand Systems from Household Budget Data: The Linear and Quadratic Expenditure Systems," American Economic Review, American Economic Association, vol. 68(3), pages 348-59, June.

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