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Chinese Domestic Textiel Demand: Where Tehy Buy Does Matter

Author

Listed:
  • MacDonald, Stephen
  • Pan, Suwen
  • Hudson, Darren
  • Tuan, Francis C.

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.

Suggested Citation

  • MacDonald, Stephen & Pan, Suwen & Hudson, Darren & Tuan, Francis C., 2012. "Chinese Domestic Textiel Demand: Where Tehy Buy Does Matter," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126354, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae12:126354
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    File URL: http://purl.umn.edu/126354
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    References listed on IDEAS

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    1. Cheng Fang & Bruce A. Babcock, 2003. "China's Cotton Policy and the Impact of China's WTO Accession and Bt Cotton Adoption on the Chinese and U.S. Cotton Sectors," Center for Agricultural and Rural Development (CARD) Publications 03-wp322, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    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.
    3. Ani L. Katchova & Wen S. Chern, 2004. "Comparison of Quadratic Expenditure System and Almost Ideal Demand System Based on Empirical Data," The International Journal of Applied Economics, Department of General Business, Southeastern Louisiana University, vol. 1(1), pages 55-64, September.
    4. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, 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 348-359, June.
    6. L. Wade, 1988. "Review," Public Choice, Springer, vol. 58(1), pages 99-100, July.
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    More about this item

    Keywords

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

    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

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