Development of an integrated model for analysing global patterns of textile and clothing trade

The elimination of quantitative restrictions on textile and clothing (T&C) trade on January 1st, 2005 under the Agreement on Textiles and Clothing (ATC) has created a dynamic and intense competitive world market for global T& C exporters. Therefore, it is desirable to study the dynamics of global T&C trading scenarios by assessing the likely impacts of T&C trade with the prevalence of liberalisation policies in the post-ATC era.;Economy-wide trade policies and company choices of global sourcing locations have a great influence on T&C trade patterns. This study aims to develop an integrated model, in both macro and micro perspectives, to better understand global T&C trade patterns in the post-ATC era. The proposed integrated model is developed by analysing both 'country' and 'firm' levels consideration, in an attempt to provide a conceptual framework to better understand T&C dynamic trade patterns.;The macro model consists of assessing the economy-wide multilateral trade liberalisation policies. The computable general equilibrium (CGE) modelling, with the Global Trade Analysis Project (GTAP) database was adopted to quantify the likely impacts of T&C trade liberalisation polices in the post-ATC era in a multi-country and multi-sector general equilibrium framework.;In addition to examining multilateral liberalisation trade policies, global T&C trade patterns in the post-ATC era are also influenced by sourcing location decisions. This study applies the analytic hierarchy process (AHP) approach to evaluate the relative importance of global sourcing decision factors in the post-ATC era, and hence to determine the preferences of the selected sourcing location alternatives. Empirical results were obtained by conducting in-office questionnaire-based interviews with a total of 48 T&C companies.;The findings from this study offer valuable insights to academic practitioners, T&C management and policy decision-makers. First, this study is a major step forward in better understanding post-ATC trade flows in a comprehensive way, i.e. it integrates both macro-level trade policies and micro-level company views on global sourcing decisions. Next, by contributing a thorough understanding of the criteria and concerns of global sourcing location decisions in the post-ATC era, it provides guidelines or references for both T&C management and policy-makers to improve the sourcing competitiveness of their firms so as to enhance exports and trade in the global arena. Finally, through the quantitative assessments of various trade liberalisation policies on major T&C supplying countries, this study provides indications to policy-makers in various countries on how different policy instruments will affect the T&C trading, as well as other sectors, after 2005.