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The price and income elasticities of the top clothing exporters: Evidence from a panel data analysis

Author

Listed:
  • Donatella Baiardi

    (Department of Economics, Quantitative Methods and Business Strategies, University of Milano-Bicocca)

  • Carluccio Bianchi

    (Department of Economics and Management, University of Pavia)

  • Eleonora Lorenzini

    (Department of Economics and Management, University of Pavia)

Abstract

This paper studies the main export function features of twelve top clothing exporters (China, Hong Kong, France, Germany, India, Indonesia, Italy, Netherlands, Spain, Turkey, UK and USA) in the period between 1992 and 2011. Price and income elasticities are estimated for each country using a panel data approach, after controlling for nonstationarity, cointegration and Granger causality. Rolling regressions are also performed, and show the existence of elasticities instability over time. The analysis suggests that most advanced countries, including Hong Kong, changed their position in the clothing global value chain towards an “organisational” role. China confirms its leadership in clothing exports although its rising price elasticity sounds a warning with regard to future prospects.

Suggested Citation

  • Donatella Baiardi & Carluccio Bianchi & Eleonora Lorenzini, 2014. "The price and income elasticities of the top clothing exporters: Evidence from a panel data analysis," DEM Working Papers Series 074, University of Pavia, Department of Economics and Management.
    • Handle: RePEc:pav:demwpp:074
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    Cited by:

    1. Thorbecke, Willem & Chen, Chen & Salike, Nimesh, 2021. "China’s exports in a protectionist world," Journal of Asian Economics, Elsevier, vol. 77(C).
    2. Ihsan Bozok & Bahar Sen Dogan & Caglar Yunculer, 2015. "Estimating Income and Price Elasticity of Turkish Exports with Heterogeneous Panel Time-Series Methods," Working Papers 1526, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    3. Willem THORBECKE & CHEN Chen & Nimesh SALIKE, 2020. "The Relationship between Product Complexity and Exchange Rate Elasticities: Evidence from the People's Republic of China's Manufacturing Industries," Discussion papers 20075, Research Institute of Economy, Trade and Industry (RIETI).
    4. Baiardi, Donatella & Bianchi, Carluccio, 2019. "At the roots of China's striking performance in textile exports: A comparison with its main Asian competitors," China Economic Review, Elsevier, vol. 54(C), pages 367-389.
    5. Willem THORBECKE, 2016. "Investigating the Effect of U.S. Monetary Policy Normalization on the ASEAN-4 Economies," Discussion papers 16070, Research Institute of Economy, Trade and Industry (RIETI).
    6. D. Baiardi & C. Bianchi, 2018. "At the roots of China's striking performance in textile exports: a comparison with its main Asian competitors," Economics Department Working Papers 2018-EP03, Department of Economics, Parma University (Italy).

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    More about this item

    Keywords

    Clothing exports; Price and income elasticities; Parameter stability; Panel data analysis Quality; Panel Granger causality;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment

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