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Globalization challenges for the Mexican textile industry

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  • Truett, Lila J.
  • Truett, Dale B.

Abstract

The Doha round and full integration of the textile industry into the GATT have the potential to dramatically affect the Mexican textile industry. This study investigates the nature of scale economies and input relationships for that industry using a cost function with capital, labor, domestic intermediate goods, and imported intermediate goods as inputs. The findings suggest that significant economies of scale exist, and that most inputs are substitutes, although for some years some inputs are complements. Increased domestic input sensitivity to the price of foreign inputs may present challenges for the industry as it struggles to be internationally competitive.

Suggested Citation

  • Truett, Lila J. & Truett, Dale B., 2010. "Globalization challenges for the Mexican textile industry," International Review of Economics & Finance, Elsevier, vol. 19(4), pages 733-741, October.
    • Handle: RePEc:eee:reveco:v:19:y:2010:i:4:p:733-741
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    References listed on IDEAS

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    Cited by:

    1. Lei Shen & Cong Sun & Muhammad Ali, 2021. "Path of Smart Servitization and Transformation in the Textile Industry: A Case Study of Various Regions in China," Sustainability, MDPI, vol. 13(21), pages 1-15, October.

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