Factors Affecting Textiles Products Exports of Major Producers: A Gravity Model Approach
Authors: Chen Fuzhong , Ahmad Shakil , Jiang Guohai , Chen Jinwei 
Published: December 2023

This study employed the gravity model approach to explore the predictors of textile product exports of the top 10 major textile producers. A specific dataset was generated and used to estimate the effects of 14 textile commodities selected in specific countries using Poisson regression and panel data from 1990 to 2021. The 10 major textile export countries hold significance in the global industry, providing comprehensive insights into export factors. Their diverse representation aids in understanding the challenges faced by exporters across continents. These countries possess substantial export markets and showcase various strategies and trade policies. Reliable data availability enables accurate analysis of factors affecting textile exports. Studying these countries enhances export performance and informs global industry strategies. Estimated results indicate that the real exchange rate, real GDP of the reporting country, preferential trade agreements, and the common border are significant positive predictors for textile exports of all commodities. The results further show that distance, average weighted tariff, and language have negative effects on the textile exports of all selected commodities. The transportation cost, measured by distance, is a barrier to textile commodity exports. The findings highlight the significant factors influencing textile exports and provide insights for exporters, policymakers, and researchers in the industry. Notably, this study addresses the challenges encountered by textile product export companies. These challenges include trade barriers, regulatory compliance, fluctuating exchange rates, intense competition, rising production costs, and market access barriers. By analyzing these challenges within the gravity model framework, the study aims to offer comprehensive insights into the complexities faced by textile exporters and their impact on the industry. The outcome of this study will be beneficial for the world’s major textile producers in setting their export targets and strategies to promote textile and cotton exports. The study suggests that the major exporters should benefit from moving exports to rich markets, which are situated at a nearby distance. The results of this study can be valuable for exporters in setting export targets, devising strategies, and formulating trade policies to overcome these challenges and enhance the competitiveness of the textile industry. The corresponding practical implications include the need to strategically manage exchange rates, focus on promoting exports to rich economies, reduce transportation costs, leverage preferential trade agreements, manage average weighted tariffs, address language barriers, and develop strategic export objectives and strategies. This research offers valuable insights for policymakers and society regarding factors influencing textile exports by major producers. Policymakers can utilize this information to inform trade regulations, exchange rate management, and the promotion of preferential trade agreements, enhancing export competitiveness and fostering sustainable practices. The research promotes international cooperation by encouraging collaboration and the sharing of best practices among reporting and partner countries. The findings contribute to economic growth, job creation, and improved standards of living, benefiting society as a whole.