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World Trade in Apparel: An Analysis of Trade Flows Using the Gravity Model

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  • Brad Christerson

    (Department of Sociology, University of California, Santa Barbara CA 93106-9430 USA)

Abstract

Although apparel trade is highly regulated, trade flows conform to patterns predicted from a simple gravity model centered on distance, size, and cost variables. For low-value apparel products, which tend to compete on price, labor costs were a significant determinant of trade flows, causing production to be dispersed to low-wage areas. For high-value products, which tend to compete on quality, fashion, and quick response to changing demand conditions, production for export tended to take place near fabric suppliers and final markets, which tend to be in higher-wage areas. Apparel production cannot be characterized exclusively according to the New International Division of Labor (NIDL) hypothesis or by other explanations based on comparative factor costs. Proximity to markets and suppliers often outweighs the importance of labor costs, particularly for high-end apparel production.

Suggested Citation

  • Brad Christerson, 1994. "World Trade in Apparel: An Analysis of Trade Flows Using the Gravity Model," International Regional Science Review, , vol. 17(2), pages 151-166, August.
    • Handle: RePEc:sae:inrsre:v:17:y:1994:i:2:p:151-166
    DOI: 10.1177/016001769401700202
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    References listed on IDEAS

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    Cited by:

    1. Pemasiri J Gunawardana & Ramya Hewarathna, 2000. "The Asian Crisis and Australia-East Asia Trade Flows: A Modified Gravity Approach," Working Papers 2000.13, School of Economics, La Trobe University.
    2. Ravi Ratnayake & Blair Townsend, 1999. "The geographical pattern of New Zealand's international trade: An application of the gravity model," New Zealand Economic Papers, Taylor & Francis Journals, vol. 33(2), pages 27-38.
    3. László Mátyás & László Kónya & Mark N. Harris, 2000. "Modelling Export Activity of Eleven APEC Countries," Melbourne Institute Working Paper Series wp2000n05, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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