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Textile Trade and tlle Pattern of Economic Growth
By
Gregory Schmid and Owen Phillips
Contents: I. Patterns of Trade. -- II. Efficient Production and Export
Performance. -- III. Successful Exporters and Economic Development. --
IV. Conlusion.
n the post-World War II era, the international economy experienced
I a period of extremely rapid growth in world trade. This boom period
reached its peak in the late i96os and early i97os. The growth in trade
created some notable opportunities for increasing exports of manufac-
tured goods from the developing countries. Certain developing countries
have been able to take advantage of these opportunities, especially those
involved in trade in textiles and apparel. This article examines the patterns
of trade in textiles and apparel, factors of production that are associated
with export competitiveness, and the impact of overall competitiveness
on the development process.
I. Patterns of Trade
The relatively stable environment for international transactions estab-
lished after World War II encouraged growth in trade. Between 1954 and
1959, world trade expanded by an average 5.2 percent per year in U.S. dol-
lar value; between 196o and 1967, by 8.2 percent per year; between 1968
and 1974, by 22.6 percent per year. Growth rates in volume terms were
more modest, though the increase was still significant: 5.2 percent, 7.3 per-
cent, and 9.7 percent in the three periods [IMF, var. iss.].
The trade boom of the late I96OS and early I97OS was even
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