IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

The Korean Textile Industry: Still Competitive, After All These Years?

Listed author(s):
  • Lila J. Truett

    (The University of Texas at San Antonio)

Registered author(s):

    Although a vital part of the economy, the Korean textile industry has been challenged by the recent reduction of international trade barriers, particularly as this industry was fully integrated into GATT in 2005. The textile industries in Japan and many other countries have also faced difficulties. This study examines future prospects for the Korean industry by investigating the presence of economies of scale and relationships among the inputs of domestic capital, labor, and intermediate goods, as well as foreign intermediate goods. The findings are consistent with constant returns to scale and a substitutes relationship among all input pairs except for domestic capital and foreign intermediate goods. Thus, there appear to be no further cost reductions available through increased output and economies of scale. However, some reduction in industry output may not result in increased unit costs either. A reduction in the price of foreign intermediate goods will increase the demand for domestic capital, but also, at least in the short run, add stress to the industry as it decreases the demand for domestic labor and domestic intermediate goods.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://business.utsa.edu/wps/eco/0004ECO-102-2010.pdf
    File Function: Full text
    Download Restriction: no

    Paper provided by College of Business, University of Texas at San Antonio in its series Working Papers with number 0004.

    as
    in new window

    Length: 24 pages
    Date of creation:
    Handle: RePEc:tsa:wpaper:0104
    Contact details of provider: Postal:
    6900 North Loop 1604 West, San Antonio, TX 78249-0631

    Phone: 210.458.4313
    Fax: 210.458.4308
    Web page: http://business.utsa.edu/wps

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as
    in new window


    1. Berndt, Ernst R & Christensen, Laurits R, 1974. "Testing for the Existence of a Consistent Aggregate Index of Labor Inputs," American Economic Review, American Economic Association, vol. 64(3), pages 391-404, June.
    2. Appelbaum, Elie, 1978. "Testing neoclassical production theory," Journal of Econometrics, Elsevier, vol. 7(1), pages 87-102, February.
    3. Barten, A. P., 1969. "Maximum likelihood estimation of a complete system of demand equations," European Economic Review, Elsevier, vol. 1(1), pages 7-73.
    4. Westbrook, M Daniel & Tybout, James R, 1993. "Estimating Returns to Scale with Large, Imperfect Panels: An Application to Chilean Manufacturing Industries," World Bank Economic Review, World Bank Group, vol. 7(1), pages 85-112, January.
    5. Harri Ramcharran, 2001. "Estimating productivity and returns to scale in the US textile industry," Empirical Economics, Springer, vol. 26(3), pages 515-524.
    6. Mikhail Kouliavtsev & Susan Christoffersen & Philip Russel, 2007. "Productivity, Scale and Efficiency in the U.S. Textile Industry," Empirical Economics, Springer, vol. 32(1), pages 1-18, April.
    7. Tybout, James R. & Westbrook, M. Daniel, 1995. "Trade liberalization and the dimensions of efficiency change in Mexican manufacturing industries," Journal of International Economics, Elsevier, vol. 39(1-2), pages 53-78, August.
    8. Guilkey, David K & Lovell, C A Knox & Sickles, Robin C, 1983. "A Comparison of the Performance of Three Flexible Functional Forms," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(3), pages 591-616, October.
    9. Ramcharran, Harri, 2001. "Productivity, returns to scale and the elasticity of factor substitution in the USA apparel industry," International Journal of Production Economics, Elsevier, vol. 73(3), pages 285-291, October.
    10. Amsden, Alice H, 1991. "Diffusion of Development: The Late-Industrializing Model and Greater East Asia," American Economic Review, American Economic Association, vol. 81(2), pages 282-286, May.
    11. Berndt, Ernst R. & Christensen, Laurits R., 1973. "The translog function and the substitution of equipment, structures, and labor in U.S. manufacturing 1929-68," Journal of Econometrics, Elsevier, vol. 1(1), pages 81-113, March.
    12. Lee, Jaimin, 1995. "Comparative advantage in manufacturing as a determinant of industrialization: The Korean case," World Development, Elsevier, vol. 23(7), pages 1195-1214, July.
    13. Eakin, B Kelly & McMillen, Daniel P & Buono, Mark J, 1990. "Constructing Confidence Intervals Using the Bootstrap: An Application to a Multi-Product Cost Function," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 339-344, May.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:tsa:wpaper:0104. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eddie Salinas)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.