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Is the End of the MFA a Threat?

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Author Info
Mohamed Ali Marouani

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Abstract

The end of the Multifiber Agreement in January, 2005 had a negative impact on the apparel industry of regional exporters, but the effects were weaker than expected. Using a dynamic general equilibrium model, the article provides a prospective assessment of the impact on Tunisia of the phase out of the MFA, and of the agreement which manages the rate of growth of Chinese clothing exports to Europe, until the end of 2007. The main findings are an increase in unemployment and wage inequality but no significant effects on the main macroeconomic variables, if the exchange rate management takes into account this shock. Copyright © 2008 The Author. Journal compilation © 2008 Blackwell Publishing Ltd.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9361.2008.00465.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Development Economics.

Volume (Year): 13 (2009)
Issue (Month): 1 (02)
Pages: 99-110
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Handle: RePEc:bla:rdevec:v:13:y:2009:i:1:p:99-110

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This page was last updated on 2009-11-22.

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