An analysis of resource efficiency in the Mauritian textile sector for sustainability challenges - does export orientation matter? Paper to be presented in the 2nd International Conference on International Trade and Investment 'Financial Crisis and Trade and Investment in Developing Countries'

Resource efficiency is an important component for a sustainable industrial sector. The study analyses the economic forces which influence resource efficiency in the Mauritian textile sector based on three indicators - energy, water and material efficiency. The econometric analysis concludes an inverted U-relationship between energy and water efficiency and firm size. Smaller and bigger firms are less resource efficient and therefore require specific attention. Capital-labour ratio, new investment, maintenance costs and R&D are all associated with lower efficiency, reflecting probably resource intensive production systems and practices with higher emphasis on product development. Expenditure on environmental protection decreases energy and water efficiency but enhances material efficiency. Export orientation enhances energy and water efficiency but reduces material efficiency. It can be concluded that trade and an export-led industrialisation with higher economic competiveness may be a driving force for selective