Globalization challenges for the Mexican textile industry |
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| Authors: | Lila J Truett Dale B Truett |
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| Institution: | 1. College of Energy, Xiamen University, Xiamen, Fujian, 361005, PR China;2. Collaborative Innovation Center for Energy Economics and Energy Policy, China Institute for Studies in Energy Policy, Xiamen University, Xiamen, Fujian, 361005, PR China;1. Department of Dermatology, BP Koirala Institute of Medical Sciences, Dharan, Nepal;2. Department of Internal Medicine, BP Koirala Institute of Medical Sciences, Dharan, Nepal;3. Private Practice, Chicago, Illinois |
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| 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. |
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