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Trade liberalisation in T&C: an overview of the welfare effects

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  • Dimitrios Dadakas
  • Stelios Katranidis

Abstract

The objective of this paper is to examine the effects that trade liberalisation in Textiles and Clothing (T&C) had on the welfare of European producers of cotton-yarn. We employ multi-market theory and a single-market approach to examine the price-induced welfare effects in four major European T&C producing countries namely, Greece, Portugal, Spain and Turkey. Results show that the liberalisation of trade had a substantial negative impact on producers' welfare in all four countries. Welfare and sensitivity analysis suggests that, while cotton-yarn price-decreases and labour-cost increases are expected to further dampen producers' welfare, the adoption of new technologies can substantially assist the competitiveness of European products in the world markets.

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Bibliographic Info

Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Trade and Global Markets.

Volume (Year): 3 (2010)
Issue (Month): 3 ()
Pages: 247-266

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Handle: RePEc:ids:ijtrgm:v:3:y:2010:i:3:p:247-266

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Web page: http://www.inderscience.com/browse/index.php?journalID=130

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Keywords: multi-market; single-market approach; applied welfare analysis; bootstrap; T&C; textiles and clothing; trade liberalisation; MFA; multi-fibre agreement; ATC; cotton yarn; garment industry; apparel industry; Greece; Portugal; Spain; Turkey.;

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  1. Jeong, Kyeong-Soo & Garcia, Philip & Bullock, David S., 2003. "A statistical method of multi-market welfare analysis applied to Japanese beef policy liberalization," Journal of Policy Modeling, Elsevier, Elsevier, vol. 25(3), pages 237-256, April.
  2. Dimitrios Dadakas & Stelios Katranidis, 2008. "Single Versus Multi-market Approach: An Application to the Greek Cotton Market," Atlantic Economic Journal, International Atlantic Economic Society, International Atlantic Economic Society, vol. 36(4), pages 469-481, December.
  3. Dimitrios Dadakas & Stelios D. Katranidis, 2010. "The Effects of Trade Liberalization in Textiles and Clothing on the Greek Market for Cotton Yarn: A Multi-Market Analysis," Review of International Economics, Wiley Blackwell, Wiley Blackwell, vol. 18(1), pages 138-152, 02.
  4. Stelios D. Katranidis & Elisavet I. Nitsi & David S. Bullock, 2005. "The effects of EU corn, cotton, and sugar beet policies on Greek producers: a multimarket analysis," Agricultural Economics, International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 33(s3), pages 423-430, November.
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Cited by:
  1. Dimitrios Dadakas & Stelios D. Katranidis, 2011. "Perspectives for the textiles and clothing industry in Greece: Past experience, outlook and policy implications," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 61(1-2), pages 13-38, January -.

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