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Abstract

This paper examines the effects of distribution channels on demand for apparel, home textiles and other textiles (such as shoes) in urban China. The estimation procedure we use in this study is implemented in three steps. First, we estimate the price/unit value information; second, we estimate the parameters for the demand systems based on QAIDs model; third, we use the J-test and determine the best suitable model for the data set. The results indicate that households spend more on apparel than home textiles and other textile products such as shoes if they purchase textile products from small stores. It also indicates that they would spend more on home textiles and shoes if they purchase from chain stores and supermarkets.

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