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The displacement effects of Chinese exports on the US clothing market

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  • Rodrigo Zeidan

Abstract

This paper focuses on the displacement of other countries’ exports by Chinese exports in the US clothing market during the 2002--2010 period (sector 62 of the Harmonized System). The main contribution is to consider individual product data and its dynamic for finding evidence of displacement. Data are for 13 countries, with balanced panels of 12 variables, 104 months, and 277 goods (08 digits). I find evidence of trade displacement for more than half of the sample, composed of developing and developed countries alike. There is evidence that Chinese exports displace other countries’ exports in all three income groups, but clearly the most affected group is the middle-income group. For Mexico and Thailand, displacement is significant and the effect is large. Some low-income countries are also affected, particularly Sri Lanka. Data on Taiwan show a particularly interesting result, with a conjecture regarding disappearance of tariff arbitrage and re-exports of Chinese apparel to the USA through Taiwan. There is no evidence of displacement patterns changing due to quotas imposed by MFA and previous trade agreements.

Suggested Citation

  • Rodrigo Zeidan, 2015. "The displacement effects of Chinese exports on the US clothing market," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 13(3), pages 217-231, August.
    • Handle: RePEc:taf:jocebs:v:13:y:2015:i:3:p:217-231
    DOI: 10.1080/14765284.2015.1063890
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    References listed on IDEAS

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    1. Ianchovichina, Elena, 2001. "Trade Liberalization in China’s Accession to WTO," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 16, pages 421-445.
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    Cited by:

    1. Artecona, Raquel & Perrotti, Daniel E. & Welslau, Lennard, 2022. "China and Latin America and the Caribbean: Exports competition in the United States market," Studies and Perspectives – ECLAC Office in Washington 48356, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Saiful Alim Rosyadi & Tri Widodo, 2018. "Impact of Donald Trump’s tariff increase against Chinese imports on global economy: Global Trade Analysis Project (GTAP) model," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 16(2), pages 125-145, April.
    3. Park-Poaps H, 2018. "The Roles Technological Advancement and Knowledge Transfers in the Global Textiles and Clothing Sector," Current Trends in Fashion Technology & Textile Engineering, Juniper Publishers Inc., vol. 2(1), pages 13-17, January.

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