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Quotas on Clothing Imports: Impact and Determinants of EU Trade Policy

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  • Juliette Milgram Baleix

Abstract

We assess the impact of the phasing‐out of quotas on European clothing imports within the framework of the phase‐out of the Multi‐Fiber Agreement and the accession of the CEEC. We use 1996 data on trade barriers for 20 categories of clothing products and 22 exporters. The estimation of a standard gravity equation concludes that tariffs have a large and negative impact as expected but seldom corroborated in the literature. The negative impact of non‐tariff barriers also appears clearly after controlling for an endogeneity bias by the instrumental variables method. The phasing‐out of quotas should increase EU imports by 20%.

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  • Juliette Milgram Baleix, 2005. "Quotas on Clothing Imports: Impact and Determinants of EU Trade Policy," Review of International Economics, Wiley Blackwell, vol. 13(3), pages 445-460, August.
    • Handle: RePEc:bla:reviec:v:13:y:2005:i:3:p:445-460
    DOI: 10.1111/j.1467-9396.2005.00516.x
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    1. Frankel, Jeffrey A. & Wei, Shang-Jin, 1993. "Emerging Currency Blocs," Center for International and Development Economics Research (CIDER) Working Papers 233209, University of California-Berkeley, Department of Economics.
    2. Tamim Bayoumi & Barry Eichengreen, 1997. "Is Regionalism Simply a Diversion? Evidence from the Evolution of the EC and EFTA," NBER Chapters, in: Regionalism versus Multilateral Trade Arrangements, pages 141-168, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Juliette Milgram‐Baleix & Ana I. Moro‐Egido, 2010. "The Asymmetric Effect of Endowments on Vertical Intra‐industrial Trade," The World Economy, Wiley Blackwell, vol. 33(5), pages 746-777, May.
    2. Hudson, Darren & Ethridge, Don E. & Mutuc, Maria Erlinda M., 2011. "Lessons Learned from the Phase-out of the MFA: Moving from Managed Distortion to Managed Distortion," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 12(1), pages 1-15, May.
    3. José V. Blanes & Juliette Milgram Baleix, 2006. "The Free Trade Agreement Morocco-EU: a simulation of the impact on EU exports," ThE Papers 06/09, Department of Economic Theory and Economic History of the University of Granada..

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