Competitiveness of Textile and Apparel Industries in the United States and Japan

Juyoung Lee, Elena Karpova

Abstract


The purpose of this research was to examine how trade and knowledge were related to competitiveness of textile and apparel industries. Two countries, the United States and Japan, were selected for the study. Both countries have similar levels of economic development (OECD, 2011). The authors utilized time series analysis – specifically, Granger Causality test to identify causal relationships between competitiveness and trade and competitiveness knowledge over fifty years. Understanding how the use of different perspectives have impacted competitiveness of textile and apparel industries in the United States and Japan might be useful for policy-makers, as well as industry business owners in developing policies and strategies for these industries and businesses. It was found trade had no effect on competitiveness in the U.S. and Japanese textile and apparel industries. The findings supported the influence of knowledge on competitiveness in the U.S. apparel industry.

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