Inter-sectoral relationships in the Texas cotton industry
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abstract
A multi-sectoral econometric model was developed to analyze economic interrelationships among various sectors of the cotton industry. Results of the study indicate that the production sector and the agribusiness sectors of the Texas cotton industry are intricately dependant on each other. More importantly, results indicated that a one bale increase in production generated $673 in revenues for the industry. Further, textile mill level price variability affected the production and ginning sectors, but not the merchant/shipper sector.