Interfiber Competition And Cotton Consumption

Author : Seth Dominic Meyer
Publisher :
ISBN 13 :
Total Pages : 682 pages
Book Rating : 4.:/5 (515 download)

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Download or read book A Model of Textile Fiber Supply and Inter-fiber Competition with Emphasis on the United States of America written by Seth Dominic Meyer and published by . This book was released on 2002 with total page 682 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the modeling of agricultural commodities, factors outside of agricultural markets are often treated as exogenous. There are few direct substitutes for the products produced in agricultural markets, as synthetic food does not yet exist. In this regard, cotton markets possess some unique characteristics that must be accounted for in investigating market conditions and impacts of government policies. Much previous work on cotton markets has ignored interactions with other fibers or held man-made fibers markets as exogenous. As the demand for fibers is a derived demand for their use in the production of textile products, it is equally important to understand the market for finished textile products. With cotton as the primary focus, a model of inter-fiber competition has been constructed. The model analyzes cotton, synthetic and cellulosic fiber markets and additionally covers wool in the United States. Man-made fiber production is handled in a unique fashion with plant capacity and utilization rates being estimated separately to determine production. Finished and semi-manufactured textile markets are also modeled for the United States and textile trade policies are investigated. The remainder of the world's cotton markets is covered with country or regional cotton models. Model results indicate that natural and man-made fibers are indeed substitutes, and that productive capacity of man-made fibers is therefore likely to have an impact on the market prices for man-made and natural fibers for an extended period of time. The model is also used to examine and quantify the effects of world income changes and liberalization of textile import quotas by the United States. Model results suggest that as trade is liberalized, United States cotton mill use is likely to decline. Under liberalization, foreign consumption and importation of raw cotton increases as do foreign exports of finished textiles to the U.S.U.S. market prices for raw cotton increase, as the effect of increased U.S. cotton exports more than offset the effects of reduced cotton mill demand.