By Jose R. De LA Torre
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Extra info for Clothing-industry Adjustment in Developed Countries
Polyester prices, for example, were lower in absolute terms in 1978 than they were in 1968. Price and income effects on demand were thus significant during this period. The shift of the clothing industry to synthetic fibres had other direct and often contradictory effects on competitiveness. Lower material prices, for example, emphasised the role of other inputs in the total cost structure. Thus, differentials in the cost of labour would appear to gain in importance as a component of competitiveness.
Clothing manufacturers, who represent approximately half of the fibre consumption in the OECD, also benefited 26 from the considerable drop in the relative prices of manmade fibres induced by the high level of innovation in production and processing which was characteristic of the chemical industry during the 1960s and early 1970s. Polyester prices, for example, were lower in absolute terms in 1978 than they were in 1968. Price and income effects on demand were thus significant during this period.
Clearly, both the absolute level and the growth rate of imports are critical to this argument. Using data from the United Nations Conference on Trade and Development (UNCTAD), a recent study by the International Labour Office (ILO) examined 34 7 individual commodity categories of imports into the European Community. The authors concluded that 'in more than two thirds of the categories the LDCs [less developed countries] increased their share of imports between 1970 and 1977; in most cases the growth rate of imports from LDCs was greatly in excess of the growth rate of imports from all sources.
Clothing-industry Adjustment in Developed Countries by Jose R. De LA Torre