Abstract
The objective of this study is to identify the determinants of exports in man-made fibers for 1977, 1982, 1992. The sample consists of 20 major exporting countries and they accounted for over 85 percent of world trade in man-made fibers in the period under review. The extended technology gap model was used and the dependent variable was a country's exports. The independent variables were the imitation lag, economies of scale, wage rate and domestic textile production. OLS regression was used to analyze the data. Static economies of scale and domestic textile production are significant in three out of four time periods while imitation lag is significant in two time periods. The wage rate is not significant in any time period. These results imply that the country, which has economies of scale in production and can take advantage of linkages in the fiber-textile system, will increase the exports in man-made fibers. However, exports in man-made fibers are not affected by the wage rate due to the capital-intensive characteristics of the industry. The results of this study will be of use to man-made fiber industry analysts as well as to trade policy analysts who are concerned with changing trade patterns and factors affecting such changes.
