IDEAS home Printed from https://ideas.repec.org/a/ags/ecjilt/329968.html
   My bibliography  Save this article

A Tariffying Thought: Imposing Tariffs on US Apparel Imports from China

Author

Listed:
  • Liu, Bing
  • Hudson, Daren
  • Devine, Jon

Abstract

Using a source-differentiated Almost Ideal Demand System (SDAIDS) model, this paper analyzes US demand for apparel imports and estimates effects of a 15% tariff increase on clothing imports from China. Our welfare analysis estimated a consumer surplus loss of about $348 million per year. Our findings show that China can improve its market position by lowering their prices, or conversely, that tariffs will disproportionally reduce Chinese market share. However, other Asian apparel exporting countries, especially Vietnam and Bangladesh, are strong competitors that could represent a challenge to the current market position of China.

Suggested Citation

  • Liu, Bing & Hudson, Daren & Devine, Jon, 2022. "A Tariffying Thought: Imposing Tariffs on US Apparel Imports from China," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 23(2), December.
    • Handle: RePEc:ags:ecjilt:329968
    DOI: 10.22004/ag.econ.329968
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/329968/files/Liu-Hudson-Devine23-2lay.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.329968?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Giancarlo Moschini & Daniele Moro & Richard D. Green, 1994. "Maintaining and Testing Separability in Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(1), pages 61-73.
    2. Kim Haden, 1990. "The Demand for Cigarettes in Japan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 446-450.
    3. Henneberry, Shida Rastegari & Hwang, Seonghuyk, 2007. "Meat Demand in South Korea: An Application of the Restricted Source-Differentiated Almost Ideal Demand System Model," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(1), pages 1-14, April.
    4. Lee, Young-Jae & Kennedy, P. Lynn & Hilbun, Brian M., 2008. "Import Demand System Analysis Of The South Korean Wine Market With The Source Differentated Aids Model," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6345, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Dawit Kelemework Mekonnen & Esendugue Greg Fonsah & Boris Borgotti, 2011. "US import demand for apple: source differentiated almost ideal demand system approach," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 4(4), pages 372-382.
    6. Elliott, Graham & Rothenberg, Thomas J & Stock, James H, 1996. "Efficient Tests for an Autoregressive Unit Root," Econometrica, Econometric Society, vol. 64(4), pages 813-836, July.
    7. Lee, Kwanyoung & Gallardo, R. Karina & Giacinti, Miguel, 2020. "The Indian Demand for Imported Fresh Apples: Effects of Tariff Reductions," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 52(1), pages 30-46, February.
    8. Henneberry, Shida Rastegari & Hwang, Seong-huyk, 2007. "Meat Demand in South Korea: An Application of the Restricted Source-Differentiated Almost Ideal Demand System Model," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 39(1), pages 47-60, April.
    9. Yang, Seung-Ryong & Koo, Won W., 1994. "Japanese Meat Import Demand Estimation With The Source Differentiated Aids Model," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(2), pages 1-13, December.
    10. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    11. James G. MacKinnon, 2010. "Critical Values For Cointegration Tests," Working Paper 1227, Economics Department, Queen's University.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mina Hejazi & Mary A. Marchant & Jue Zhu & Xin Ning, 2019. "The decline of U.S. export competitiveness in the Chinese meat import market," Agribusiness, John Wiley & Sons, Ltd., vol. 35(1), pages 114-126, January.
    2. Simeon Kaitibie & Patrick Irungu & John N. Ng’ombe & Arnold Missiame, 2022. "Managing Food Imports for Food Security in Qatar," Economies, MDPI, vol. 10(7), pages 1-18, July.
    3. Coulibaly, Jeanne Y., 2013. "Do Source and Quality matter in the Demand for Imported Rice in Côte d’Ivoire?," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161266, African Association of Agricultural Economists (AAAE).
    4. Sophie Drogue & Jean-Philippe Gervais, 2010. "Guidelines and methodology to analyze the different case studies," Working Papers hal-02818030, HAL.
    5. Elham Pourmokhtar & Reza Moghaddasi & Amir Mohammad Nejad & Seyed Safdar Hosseini, 2018. "Meat demand model in Iran: a restricted source-differentiated almost ideal demand system approach," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 10(2), pages 194-204, Oktober.
    6. Coulibaly, Jeanne Y. & Tebila, Nakelse & Diagne, Aliou, 2015. "Reducing Rice Imports in Côte d’Ivoire: Is a Rise in Import Tariff the Solution?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(3), pages 1-19, December.
    7. repec:ags:afjare:225651 is not listed on IDEAS
    8. Ning, Xin & Grant, Jason H. & Peterson, Everett B., 2021. "Estimating Structural Change in the Japanese Beef Import Market in the Wake of BSE: A Smooth Transition Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(1), January.
    9. Lee, Young-Jae & Kennedy, P. Lynn & Hilbun, Brian M., 2008. "Import Demand System Analysis Of The South Korean Wine Market With The Source Differentated Aids Model," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6345, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Chen, Bowen & Villoria, Nelson & Xia, Tian, 2017. "Import Protections in China’s Grain Markets: An Empirical Assessment," 2017: Globalization Adrift, December 3-5, 2017, Washington, D.C. 266817, International Agricultural Trade Research Consortium.
    11. Okrent, Abigail M. & Alston, Julian M., 2011. "Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," Monographs, University of California, Davis, Giannini Foundation, number 251908, December.
    12. Edgardo Ayala & Joana Chapa, 2017. "AH1N1 impact on the Mexican pork meat market," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 32(1), pages 3-25.
    13. Tsunehiro Otsuki, 2011. "Demand Response for Imported and Domestic Poultry Meat Products to Food Safety Regulations in Japan: An Application of the Almost Ideal Demand System Model," OSIPP Discussion Paper 11E007, Osaka School of International Public Policy, Osaka University.
    14. Rodrigo García Arancibia & Edith Depetris Guiguet, 2020. "Brazilian Import Demand of Dairy Products with Emphasis in the Mercosul Context [Demanda brasileira de importações de laticínios com ênfase no contexo do Mercosul]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 30(2), pages 551-577, May-Augus.
    15. Bowen Chen & Nelson B. Villoria & Tian Xia, 2020. "Tariff quota administration in China's grain markets: An empirical assessment," Agricultural Economics, International Association of Agricultural Economists, vol. 51(2), pages 191-206, March.
    16. Rodrigo Garc?a Arancibia, 2019. "Import Demand for Dairy Products in Chile and Competition among Exporting Countries: The Case of Milk Powder and Cheese," Economia agro-alimentare, FrancoAngeli Editore, vol. 21(1), pages 101-128.
    17. Richards, Timothy J. & Kagan, Albert & Gao, Xiaoming, 1997. "Factors Influencing Changes In Potato And Potato Substitute Demand," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(1), pages 1-15, April.
    18. H. Holly Wang & Na Hao & Qingjie Zhou & Michael E. Wetzstein & Yong Wang, 2019. "Is fresh food shopping sticky to retail channels and online platforms? Evidence and implications in the digital era," Agribusiness, John Wiley & Sons, Ltd., vol. 35(1), pages 6-19, January.
    19. Shashika D. Rathnayaka & Saroja Selvanathan & E. A. Selvanathan, 2021. "Demand for animal‐derived food in selected Asian countries: A system‐wide analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 52(1), pages 97-122, January.
    20. Susanto, Dwi & Rosson, C. Parr, III & Henneberry, Shida Rastegari, 2008. "The Structure of U.S. Red Meat and Livestock Imports," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6824, Southern Agricultural Economics Association.
    21. Thanagopal, Dr. Thannaletchimy & Housset, Félix, 2017. "A quality-adjusted AIDS model in the study of French imports," International Economics, Elsevier, vol. 151(C), pages 85-99.

    More about this item

    Keywords

    Agricultural and Food Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ecjilt:329968. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/esteyca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.