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Non-linear panel estimation of import quotas: The evolution of quota premiums under the ATC

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  • Francois, Joseph
  • Woerz, Julia

Abstract

We develop a panel-based inequality constrained least-squares (ICLS) framework for estimating the export tax equivalent (ETE) of quotas where the ETEs vary over time. Working with a panel of bilateral data on textile and clothing trade,underlying bilateral tariffs, and the country-pair coverage of quotas under the WTO's Agreement on Textiles and Clothing (ATC), we use this framework to examine the evolution of market access conditions in the textile and clothing sectors. Our estimating framework takes advantage of the panel nature of trade data when calculating export tax equivalents while allowing for inequality constraints on the quota premium estimates. We also implement quadrature methods for calculating confidence intervals for our regression-based NTB measures.

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Bibliographic Info

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

Volume (Year): 78 (2009)
Issue (Month): 2 (July)
Pages: 181-191

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Handle: RePEc:eee:inecon:v:78:y:2009:i:2:p:181-191

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Web page: http://www.elsevier.com/locate/inca/505552

Related research

Keywords: NTB ICLS Quadrature Quotas ATC MFA MPEC Gravity model;

References

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  14. Carolyn Evans & James Harrigan, 2005. "Tight Clothing. How the MFA Affects Asian Apparel Exports," NBER Chapters, in: International Trade in East Asia, NBER-East Asia Seminar on Economics, Volume 14, pages 367-390 National Bureau of Economic Research, Inc.
  15. Feenstra, Robert C, 2002. "Border Effects and the Gravity Equation: Consistent Methods for Estimation," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 491-506, December.
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Citations

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Cited by:
  1. Di Comite, Francesco & Rovegno, Laura & Vandenbussche, Hylke & Viegelahn, Christian, 2011. "Moving up the Quality ladder? EU-China Trade Dynamics in Clothing," CEPR Discussion Papers 8725, C.E.P.R. Discussion Papers.
  2. Horst Raff & Joachim Wagner, 2009. "Intra-Industry Adjustment to Import Competition: Theory and Application to the German Clothing Industry," CESifo Working Paper Series 2851, CESifo Group Munich.
  3. Fabrice Defever & Benedikt Heid & Mario Larch, 2011. "Spatial Exporters," CEP Discussion Papers dp1100, Centre for Economic Performance, LSE.
  4. Joseph Francois, 2010. "Comment on "China's Experience under the Multifiber Arrangement (MFA) and the Agreement on Textile and Clothing (ATC)"," NBER Chapters, in: China's Growing Role in World Trade, pages 387-395 National Bureau of Economic Research, Inc.

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