Determinants of Apparel Exports in Developed Economies: Application of the Gravity Model and Economic Geography Theory

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Elena Karpova, Putman & Hayes Distinguished Professor (Creator)
The University of North Carolina at Greensboro (UNCG )
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Abstract: The purpose of this study was to examine factors that can explain apparel export in economically developed countries. Theoretical framework is based on the gravity model and economic geography theory. Three factors were investigated in relation to apparel export in developed countries: (a) supply of apparel export, (b) potential apparel demand and (c) existence of fashion capital. Secondary data were collected for thirty-one country-members of Organization for Economic Cooperation and Development. Multiple regression analysis showed that apparel domestic supply and potential apparel demand are strong determinants of apparel export in developed countries. The final model explained the 74% of variance in apparel exports from developed countries. Understanding determinants that drive apparel export could facilitate development of new strategies for fostering competitiveness of domestic apparel industries. The results might be beneficial to multinational companies assessing possible apparel production sites for high-value added products.

Additional Information

Clothing and Textiles Research Journal, 32(3), 139-152
Language: English
Date: 2014
apparel export, developed countries, gravity model, fashion capital

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