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The rise and fall of (Chinese) African apparel exports

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  • Rotunno, Lorenzo
  • Vézina, Pierre-Louis
  • Wang, Zheng

Abstract

During the final years of the Multifiber Agreement (2001–2005) the US imposed quotas on Chinese apparel while it gave African apparel duty- and quota-free access. We argue that the combination of these policies led to a rapid but ephemeral rise of African exports that can be explained in part by ethnic-Chinese firms using Africa as a quota-hopping export platform. We first provide a large body of anecdotal evidence on the ethnic-Chinese apparel wave in Africa. Second, we show that Chinese exports to Africa predict US imports from the same countries and in the same apparel categories but only where transhipment incentives are present, i.e. for products facing US quotas and in countries with preferential access to the US unconstrained by rules of origin. Our estimates indicate that direct transhipment may account for around 22% of Africa's apparel exports during 2001–2008.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 105 (2013)
Issue (Month): C ()
Pages: 152-163

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Handle: RePEc:eee:deveco:v:105:y:2013:i:c:p:152-163

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Web page: http://www.elsevier.com/locate/devec

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Keywords: Transhipment; AGOA; Multifiber agreement;

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Cited by:
  1. Pierre-Louis Vezina, 2014. "Illegal Trade in Natural Resources: Evidence from missing exports," OxCarre Working Papers 139, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  2. Cooke, Edgar F. A., 2012. "Is the impact of AGOA heterogeneous?," MPRA Paper 43277, University Library of Munich, Germany.

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