IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v13y2023i4p21582440231213688.html
   My bibliography  Save this article

Factors Affecting Textiles Products Exports of Major Producers: A Gravity Model Approach

Author

Listed:
  • Fuzhong Chen
  • Shakil Ahmad
  • Guohai Jiang
  • Jinwei Chen

Abstract

This study employed the gravity model approach to explore the predictors of textile product exports of the top 10 major textile producers. A specific dataset was generated and used to estimate the effects of 14 textile commodities selected in specific countries using Poisson regression and panel data from 1990 to 2021. The 10 major textile export countries hold significance in the global industry, providing comprehensive insights into export factors. Their diverse representation aids in understanding the challenges faced by exporters across continents. These countries possess substantial export markets and showcase various strategies and trade policies. Reliable data availability enables accurate analysis of factors affecting textile exports. Studying these countries enhances export performance and informs global industry strategies. Estimated results indicate that the real exchange rate, real GDP of the reporting country, preferential trade agreements, and the common border are significant positive predictors for textile exports of all commodities. The results further show that distance, average weighted tariff, and language have negative effects on the textile exports of all selected commodities. The transportation cost, measured by distance, is a barrier to textile commodity exports. The findings highlight the significant factors influencing textile exports and provide insights for exporters, policymakers, and researchers in the industry. Notably, this study addresses the challenges encountered by textile product export companies. These challenges include trade barriers, regulatory compliance, fluctuating exchange rates, intense competition, rising production costs, and market access barriers. By analyzing these challenges within the gravity model framework, the study aims to offer comprehensive insights into the complexities faced by textile exporters and their impact on the industry. The outcome of this study will be beneficial for the world’s major textile producers in setting their export targets and strategies to promote textile and cotton exports. The study suggests that the major exporters should benefit from moving exports to rich markets, which are situated at a nearby distance. The results of this study can be valuable for exporters in setting export targets, devising strategies, and formulating trade policies to overcome these challenges and enhance the competitiveness of the textile industry. The corresponding practical implications include the need to strategically manage exchange rates, focus on promoting exports to rich economies, reduce transportation costs, leverage preferential trade agreements, manage average weighted tariffs, address language barriers, and develop strategic export objectives and strategies. This research offers valuable insights for policymakers and society regarding factors influencing textile exports by major producers. Policymakers can utilize this information to inform trade regulations, exchange rate management, and the promotion of preferential trade agreements, enhancing export competitiveness and fostering sustainable practices. The research promotes international cooperation by encouraging collaboration and the sharing of best practices among reporting and partner countries. The findings contribute to economic growth, job creation, and improved standards of living, benefiting society as a whole.

Suggested Citation

  • Fuzhong Chen & Shakil Ahmad & Guohai Jiang & Jinwei Chen, 2023. "Factors Affecting Textiles Products Exports of Major Producers: A Gravity Model Approach," SAGE Open, , vol. 13(4), pages 21582440231, December.
    • Handle: RePEc:sae:sagope:v:13:y:2023:i:4:p:21582440231213688
    DOI: 10.1177/21582440231213688
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440231213688
    Download Restriction: no
    File URL: https://libkey.io/10.1177/21582440231213688?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Richter, Nicole Franziska & Martin, Jonathan & Hansen, Sofie V. & Taras, Vasyl & Alon, Ilan, 2021. "Motivational configurations of cultural intelligence, social integration, and performance in global virtual teams," Journal of Business Research, Elsevier, vol. 129(C), pages 351-367.
    2. Nazir Muhammad Abdullahi & Xuexi Huo & Qiangqiang Zhang & Aminah Bolanle Azeez, 2021. "Determinants and Potential of Agri-Food Trade Using the Stochastic Frontier Gravity Model: Empirical Evidence From Nigeria," SAGE Open, , vol. 11(4), pages 21582440211, December.
    3. Jeffrey Frankel & Andrew Rose, 2002. "An Estimate of the Effect of Common Currencies on Trade and Income," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(2), pages 437-466.
    4. Hani A. Abu-Qdais & Muna A. Abu-Dalo & Yazan Y. Hajeer, 2021. "Impacts of Nanosilver-Based Textile Products Using a Life Cycle Assessment," Sustainability, MDPI, vol. 13(6), pages 1-14, March.
    5. Gendron, John H., 2021. "Employment preservation and textile regulation in early modern England, 1550–1640," Journal of Institutional Economics, Cambridge University Press, vol. 17(4), pages 529-543, August.
    6. Kar, Saibal & Kar, Mausumi, 2010. "The multi fibre arrangement and South Asia," MPRA Paper 103801, University Library of Munich, Germany.
    7. Md. Iqbal Bhuyan & Keun-Yeob Oh, 2021. "Exports and Inequality: Evidence from the Highly Concentrated Textile and Garment Sector of Bangladesh," Journal of South Asian Development, , vol. 16(2), pages 293-309, August.
    8. Chorong Youn & Hye Jung Jung, 2021. "Semantic Network Analysis to Explore the Concept of Sustainability in the Apparel and Textile Industry," Sustainability, MDPI, vol. 13(7), pages 1-17, March.
    9. Goto, Junichi, 1989. "The Multifibre Arrangement and Its Effects on Developing Countries," The World Bank Research Observer, World Bank, vol. 4(2), pages 203-227, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:ebl:ecbull:v:6:y:2004:i:4:p:1-8 is not listed on IDEAS
    2. Fetzer, James J. & Rivera, Sandra A., 2005. "Modeling Modifications in Rules of Origin: A Partial Equilibrium Approach," Conference papers 331372, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Jinjarak, Yothin, 2014. "Equity prices and financial globalization," International Review of Financial Analysis, Elsevier, vol. 33(C), pages 49-57.
    4. Herbert Buscher & Hubert Gabrisch, 2012. "The synchronization of wage dynamics across EMU members. A test of the endogeneity hypothesis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(3), pages 327-340, August.
    5. Calderon, Cesar & Chong, Alberto & Stein, Ernesto, 2007. "Trade intensity and business cycle synchronization: Are developing countries any different?," Journal of International Economics, Elsevier, vol. 71(1), pages 2-21, March.
    6. repec:spo:wpmain:info:hdl:2441/941 is not listed on IDEAS
    7. Gaies, Brahim & Goutte, Stéphane & Guesmi, Khaled, 2019. "Banking crises in developing countries–What crucial role of exchange rate stability and external liabilities?," Finance Research Letters, Elsevier, vol. 31(C).
    8. Arjan Lejour & Vladimir Solanic & Paul Tang, 2009. "EU Accession and Income Growth: An Empirical Approach," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 16(1), pages 127-144, May.
    9. Tamazian, Artur & Bhaskara Rao, B., 2010. "Do economic, financial and institutional developments matter for environmental degradation? Evidence from transitional economies," Energy Economics, Elsevier, vol. 32(1), pages 137-145, January.
    10. Changkyu Choi & Seung-Gwan Baek, 2008. "Exchange-Rate Regimes and International Reserves," Korean Economic Review, Korean Economic Association, vol. 24, pages 105-129.
    11. George Gelauff & Herman Stolwijk & Paul Veenendaal, 2005. "Europe's financial perspectives in perspective," CPB Document 101.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    12. Castro, Rui & Koumtingué, Nelnan, 2014. "On the individual optimality of economic integration," Journal of Monetary Economics, Elsevier, vol. 68(C), pages 115-135.
    13. Arellano, Cristina & Heathcote, Jonathan, 2010. "Dollarization and financial integration," Journal of Economic Theory, Elsevier, vol. 145(3), pages 944-973, May.
    14. Gregory Corcos & Massimo Del Gatto & Giordano Mion & Gianmarco I.P. Ottaviano, 2012. "Productivity and Firm Selection: Quantifying the ‘New’ Gains from Trade," Economic Journal, Royal Economic Society, vol. 122(561), pages 754-798, June.
    15. Abu Hatab, Assem, 2015. "The Impact of Regional Integration on Intra-Arab Trade in Agrifood Commodities: A Panel Data Approach," MPRA Paper 67991, University Library of Munich, Germany, revised 07 Jun 2015.
    16. Slim Mahfoudh & Mohamed Ben Amar, 2015. "The Impact of Economic Policies on Economic Growth in a Group of Arabic Countries: Empirical Verification using Non-Stationary Panel Model," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 131-137, May.
    17. Badinger, Harald, 2008. "Trade policy and productivity," European Economic Review, Elsevier, vol. 52(5), pages 867-891, July.
    18. M. A. Adebiyi & M. O. Abeng, 2019. "The Sensitivity of Sector Stock Returns to Exchange Rate Risks in Nigeria," Economic and Financial Review, Central Bank of Nigeria, vol. 57(2), June.
    19. Bojnec, Stefan & Ferto, Imre, 2009. "Communication Costs and Agro-Food Trade in OECD Countries," 83rd Annual Conference, March 30 - April 1, 2009, Dublin, Ireland 50937, Agricultural Economics Society.
    20. repec:hal:wpspec:info:hdl:2441/c8dmi8nm4pdjkuc9g708pipbp is not listed on IDEAS
    21. Levy Yeyati, Eduardo & Sturzenegger, Federico & Reggio, Iliana, 2010. "On the endogeneity of exchange rate regimes," European Economic Review, Elsevier, vol. 54(5), pages 659-677, July.
    22. Robert Barro & Silvana Tenreyro, 2007. "Economic Effects Of Currency Unions," Economic Inquiry, Western Economic Association International, vol. 45(1), pages 1-23, January.
    23. Keyi Duan & Mingyao Cao & Nurhafiza Abdul Kader Malim & Yan Song, 2022. "Nonlinear Relationship between Financial Development and CO 2 Emissions—Based on a PSTR Model," IJERPH, MDPI, vol. 20(1), pages 1-15, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:sagope:v:13:y:2023:i:4:p:21582440231213688. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.