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A Regional Model Of Import -Employment Substitution: The Case Of Textiles

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  • David Henderson

    (ERS, USDA)

  • Scott Sanford

    (ERS, USDA)

Abstract

An elasticity of textile employment with respect to textile imports is estimated for the nation, two regions, and four local areas. A theoretical labor demand equation is derived which endogenizes textile imports and facilitates direct estimation of import-employment elasticities. The results indicate the textile imports only partially substitute for domestic employment and that the estimated elasticity varies by region. The estimated elasticity was -.27 for the nation and ranged from -.22 to -.31 at the regional level and from -.43 to -.19 for the local analysis. The elasticities are used in an impact analysis to demonstrate the over and under estimation of direct employment loss which occurs when estimates from spatial averages are used.

Suggested Citation

  • David Henderson & Scott Sanford, 1991. "A Regional Model Of Import -Employment Substitution: The Case Of Textiles," The Review of Regional Studies, Southern Regional Science Association, vol. 21(1), pages 79-90, Spring.
    • Handle: RePEc:rre:publsh:v21:y:1991:i:1:p:79-90
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    References listed on IDEAS

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    1. Max E. Jerrell & James M. Morgan, 1988. "Modeling Labor Demand in a State Econometric Model," The Review of Regional Studies, Southern Regional Science Association, vol. 18(3), pages 31-40, Fall.
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