This article traces the internationalization of the U.S. footwear industry in terms of the many changes affecting market structure, raw materials, technology, shoe styling, wages, transportation, and the unresponsiveness of U.S. manufacturers to the foreign challenge. The econometric findings of an import demand function fit to U.S. data from 1963-1991 reveal unitary and significant elasticities with respect to both activity and price variables, well within the range of other studies of the footwear industry reviewed here. Possible scenarios of the impact of NAFTA on the U.S., Mexican, and Colombian footwear industries are presented in the context of a detailed analysis of Colombia's footwear industry, its exports to the world in general and to the United States. By examining the average unit prices of all Colombian exports and the U.S. tariffs specific to these products, we speculate on the potential for Colombian exports once tariffs are lowered.
ASJC Scopus subject areas
- Economics and Econometrics