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Textile and clothing exports of selected South and Southeast Asian countries: A challenge to NAFTA trading

W.Y. Tsang (Institute of Textiles and Clothing, The Hong Kong Polytechnic University, Kowloom, Hong Kong, People's Republic of China)
K.F. Au (Institute of Textiles and Clothing, The Hong Kong Polytechnic University, Kowloom, Hong Kong, People's Republic of China)

Journal of Fashion Marketing and Management

ISSN: 1361-2026

Article publication date: 19 September 2008

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Abstract

Purpose

This paper examines and divulges the impacts of North American Free Trade Agreement (NAFTA) on textile and clothing (T&C) exports from selected South and Southeast (S&SE) Asian developing countries and the NAFTA members to the USA.

Design/methodology/approach

A gravity model of sectoral‐level analysis was employed to analyze the effects of the NAFTA on T&C trade among member and non‐member countries. Regional indicator variables were used to identify the change in the T&C trade effect arising from the free trade area (FTA).

Findings

The increase in T&C intra trade within the NAFTA could be shown by the increasing trend of the regional indicator variables in three consecutive time intervals from 1990 to 2001 in the regression model. However, the indicator variables of both the T&C trade models decline substantially to negative value in the period 2002‐2005. This is consistent with the current situation that the total export trade among the NAFTA partners has trended downwards in subsequent years. The descending trend of the intra‐NAFTA T&C trade could be attributed to the increasing competition from S&SE Asian countries with the gradual phasing out of quotas under the Agreement of Textiles and Clothing and the further elimination of quotas after 2005.

Originality/value

The value of this research in assessing the correlation between NAFTA on the T&C trade can show S&SE Asian developing countries the importance of them within their emerging economy. This study shows the specific impact of the FTA and offers a vital insight on global T&C trade.

Keywords

Citation

Tsang, W.Y. and Au, K.F. (2008), "Textile and clothing exports of selected South and Southeast Asian countries: A challenge to NAFTA trading", Journal of Fashion Marketing and Management, Vol. 12 No. 4, pp. 565-578. https://doi.org/10.1108/13612020810906191

Publisher

:

Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited

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