Changes in Global Cotton Markets: Causes and Effects

This paper presents a summary of the changes that have occurred in the global cotton market over the past two decades and offers interpretations on their causes and effects. Changes and effects differ substantially by country, and dominant countries in the various market changes are thus emphasized. Causes of changes are addressed under two categories, global factors affecting markets for goods in general and factors specific to cotton and textile markets. Overall, China has emerged as the country with the most prominent changes in both the cotton and textile sectors and an influential source of changes in many other countries. Some of the factors that will likely impact future changes in the global situation are briefly discussed.