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Policy Implications Of Textile Trade Management And The U.S. Cotton Industry

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  • Shui, Shangnan
  • Wohlgenant, Michael K.
  • Beghin, John C.

Abstract

This study investigates the effects on the U.S. cotton industry of textile trade liberalization using a multi-market equilibrium displacement model. The simulation results suggest that textile trade liberalization would induce small changes in the total demand for U.S. cotton but would affect considerable y U.S. cotton demand structure, making U. S, cotton growers more dependent on world markets. The welfare analyses reveal that textile trade liberalization would result in a small welfare loss for U, S. cotton producers. As expected, textile trade liberalization also would lead to considerable substitution of imports for domestic production and substantial declines in prices of all textile products.

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File URL: http://purl.umn.edu/31634
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Bibliographic Info

Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

Volume (Year): 22 (1993)
Issue (Month): 1 (April)
Pages:

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Handle: RePEc:ags:arerjl:31634

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Keywords: International Relations/Trade;

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  1. Trela, Irene & Whalley, John, 1990. "Global Effects of Developed Country Trade Restrictions on Textiles and Apparel," Economic Journal, Royal Economic Society, vol. 100(403), pages 1190-1205, December.
  2. Anderson, James E & Neary, J Peter, 1992. "Trade Reform with Quotas, Partial Rent Retention, and Tariffs," Econometrica, Econometric Society, vol. 60(1), pages 57-76, January.
  3. Shui, Shangnan & Beghin, John C. & Wohlgenant, M., 1993. "Impact of Technical Change, Scale Effects and Forward Ordering on U.S. Fiber Demands, The," Staff General Research Papers 1567, Iowa State University, Department of Economics.
  4. Duffy, Patricia A. & Richardson, James W. & Wohlgenant, Michael K., 1987. "Regional Cotton Acreage Response," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(01), July.
  5. Bigman, David, 1978. "Derived Demand and Distributive Shares in a Multifactor Multisector Model," American Economic Review, American Economic Association, vol. 68(5), pages 923-28, December.
  6. Shui, Shangnan & Beghin, John C. & Wohlgenant, M., 1992. "Textile Trade Liberalization and Its Welfare Implications for U.S. Cotton Producers," Staff General Research Papers 1611, Iowa State University, Department of Economics.
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