ABSTRACT
The textile and apparel industries in the United States have experienced tremendous structural changes in the past forty years. These significant structural changes are characterized by technological change, employment reduction, decline in production, and rising imports. Technological change and scale effects have played a significant role in the continuing decline in the mill consumption of cotton and wool. Rising imports continue to affect the employment and output in the apparel sector. The capital deepening process in the textile sector is characterized by automation and mechanization of the textile production process. Significant biases on factor demands due to technological change are found to be labor-saving and capital-using. Higher labor prices have contributed to greater cost reduction as technology advances. The Multi Fiber Arrangement (MFA) came into being as a result of increasing imports. The MFA is aimed at providing assistance and protection to domestic producers facing intense foreign competition.
