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Quantitative Restrictions on Clothing Imports: Impact and Determinants of the Common Trade Policy Towards Developing Countries

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Abstract

This study aims to assess the impact of the phasing out of quotas on European clothing imports within the framework of dismantling the Multi-Fibre Agreement and the adhesion of the CEEC. An econometric study is carried out on cross-sectional data for 1996 thanks to an original gathering of data on tariff and non-tariff barriers, which treatment presents an economic policy interest as well as a methodological challenge. The negative impact of tariff barriers is quite evident, whereas the impact of non-tariff barriers is considered positive, due to an endogeneity bias which is controlled by instrumental variables. The common trade policy in this sector thus seems to be quite discriminating among the partner countries. The model of our study is meant to simulate the impact of the suppression of quotas on the growth of the member countries' imports of articles of the garment industry.

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Paper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number E2003/04.

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Length: 28 pages
Date of creation: 2003
Date of revision:
Handle: RePEc:cea:doctra:e2003_04

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Keywords: MFA; Trade policy; quantitative restrictions; endogeneity bias; gravity model.;

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