What Factors Shape Textile and Apparel Regional Trade Patterns?

Abstract

Background: While textile and apparel (T&A) 1 are known as a global sector, T&A trade remains largely regional-based, i.e., countries import and export T&A with partners in the same region (Dicken, 2015, pp.451-469). However, the T&A regional trade patterns, their evolution trajectory, and related factors remain largely unknown. This study aims to explore the T&A regional trade patterns and their affecting factors, focusing on three primary T&A regional trade blocs in the world: Asia, EU, and WH (Dicken, 2015, pp.451-469). The findings will fulfill a critical research gap and significantly enhance our understanding of the nature of T&A trade and its supply chains in today's world economy. As T&A regional trade often involves regional trade agreements (RTAs), the findings will also provide valuable inputs on the sectoral impacts of these RTAs and supporting related trade policymaking (Keough & Lu, 2020). 1 In this article, "Textile" refers to the Standard International Trade Classification (SITC) Revision 3 code 65. "Apparel" refers to the SITC Revision 3 code 84 (UNCTAD, 2020). 2 The scope of "Asia", "EU", and "WH" follows the country classification by World Bank (2021).