ABSTRACT
The textile mill sector in the US has undergone significant structural changes, which are characterized by employment reductions, mill closings, declines in output, and shift of production to foreign countries with low wage costs. The timing of the structural change in the textile sector corresponds to a period of technical advances and the introduction of the Multi Fiber Arrangement. Imports are the significant source of structural change in the textile and apparel industries. The close interindustry relationship between the textile mill sector and the apparel sector has transformed the changes in one sector to another directly and indirectly. The apparel sector has been an important end-use market for textile products. Strong competitive pressure from foreign producers in the end-use market of textiles creates an incentive for the US textile mills to introduce the capital deepening process and/or technological change.
