This paper analyses the world demand for fibers using the system-wide approach with
three dimensions—product x space x time. We investigate to what extent differences
in international consumption patterns of fibers can be explained by differences in
incomes and prices faced by different consumers. A novel approach to cross-country
consumption comparisons is employed to avoid the troublesome problem of what exchange
rates to use when converting data into a common currency unit. We use data from the
ten largest consuming countries to estimate demand systems and then examine how they
perform in predicting consumption patterns in a large number of out-of-sample countries.