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Impact of Technical Change, Scale Effects and Forward Ordering on U.S. Fiber Demands, The

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  • Shui, Shangnan
  • Beghin, John C.
  • Wohlgenant, M.

Abstract

This paper estimates a complete system of input cost shares in U.S. textile production, using time-series data and a linear logit specification incorporating the impact of technical change and scale effects on derived demands for natural and manmade fibers. The specification accounts for forward ordering dynamics in the textile industry. Technical change has decreased natural fiber use in U.S. textile mills in favor of manmade fibers. Decomposition analysis of economic factors affecting long-run use of natural versus manmade fiber indicates that nonprice factors account for 70% of the decline in long-run natural fiber use.

Suggested Citation

  • Shui, Shangnan & Beghin, John C. & Wohlgenant, M., 1993. "Impact of Technical Change, Scale Effects and Forward Ordering on U.S. Fiber Demands, The," Staff General Research Papers Archive 1567, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:1567
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    Cited by:

    1. Capps Jr., Oral & Bessler, David A. & Davis, George C. & Nichols, John P., 1996. "Economic Evaluation of the Cotton Checkoff Program," Economic Evaluation of Commodity Promotion Programs in the Current Legal and Political Environment, October 7-8, 1996, Monterey, California 279664, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    2. Beghin, John C. & Meade, Birgit & Rosen, Stacey, 2014. "A Consistent Food Demand Framework for International Food Security Assessment," Staff General Research Papers Archive 38196, Iowa State University, Department of Economics.
    3. Zhang, Ping & Fletcher, Stanley M. & Ethridge, Don E., 1994. "Interfiber Competition In Textile Mills Over Time," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(1), pages 1-10, July.
    4. Spierdijk, Laura & Shaffer, Sherrill & Considine, Tim, 2017. "How do banks adjust to changing input prices? A dynamic analysis of U.S. commercial banks before and after the crisis," Journal of Banking & Finance, Elsevier, vol. 85(C), pages 1-14.
    5. Shui, Shangnan & Wohlgenant, Michael K. & Beghin, John C., 1993. "Policy Implications Of Textile Trade Management And The U.S. Cotton Industry," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 22(1), pages 1-11, April.
    6. Stephen Macdonald & Suwen Pan & Darren Hudson & Francis Tuan, 2014. "Toward a consumer economy in China: implications of changing wage policies for U.S. cotton exports," Agricultural Economics, International Association of Agricultural Economists, vol. 45(4), pages 513-524, July.
    7. Considine, Timothy J., 2018. "Estimating concave substitution possibilities with non-stationary data using the dynamic linear logit demand model," Economic Modelling, Elsevier, vol. 72(C), pages 22-30.
    8. Surabhi Mittal, 2007. "OECD Agricultural Trade Reforms Impact on India's Prices and Producers Welfare," Indian Council for Research on International Economic Relations, New Delhi Working Papers 195, Indian Council for Research on International Economic Relations, New Delhi, India.
    9. Tsekouras, K. D. & Zagouras, N. G., 1998. "A cost function of Greek non-ferrous metal industry," International Journal of Production Economics, Elsevier, vol. 56(1), pages 621-640, September.
    10. Smith, Anna Rickett & Dorfman, Jeffrey H., 2002. "An Economic Evaluation Of Cotton And Peanut Research In Southeastern United States," 2002 Annual meeting, July 28-31, Long Beach, CA 19900, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Capps, Oral, Jr. & Williams, Gary W., 2006. "The Economic Effectiveness of the Cotton Checkoff Program," Reports 90753, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
    12. Catherine J. Morrison Paul, 1999. "Scale Effects and Mark‐ups in the US Food and Fibre Industries: Capital Investment and Import Penetration Impacts," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(1), pages 64-82, January.
    13. Kinnucan, Henry W. & Ding, Lily & Xiao, Hui, 1996. "Nonprice Export Promotion with Market Distortions and Spillovers: The Case of IWS Wool Promotion in the United States," Agricultural Commodity Promotion Policies and Programs in the Global Agri-Food System, May 26-27, 1996, Cancun, Mexico 279650, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    14. Surabhi Mittal, 2007. "Oecd Agricultural Trade Reforms Impact On India’s Prices And Producers Welfare," Trade Working Papers 22225, East Asian Bureau of Economic Research.

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