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Rags in the High Rent District: The Evolution of Quota Rents in Textiles and Clothing

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Francois, Joseph
Wörz, Julia

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Abstract

We develop a mixed complementarity programming (MCP) based estimating framework for non-tariff barriers (NTBs) to examine the evolution of market access conditions in the textile and clothing sectors, working with a panel of bilateral trade 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). 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 introduce Gaussian quadrature for estimating goodness of fit for regression-based NTB measures based on residual fitting.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5477.

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Date of creation: Feb 2006
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Handle: RePEc:cpr:ceprdp:5477

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Related research
Keywords: ATC; Gaussian Quadrature; import quotas; MFA; NTB estimation;

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Find related papers by JEL classification:
C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Statistical Simulation Methods
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Francois, Joseph & Hoekman, Bernard & Manchin, Miriam, 2005. "Preference erosion and multilateral trade liberalization," Policy Research Working Paper Series 3730, The World Bank. [Downloadable!]
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  2. 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. [Downloadable!]
    Other versions:
  3. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March. [Downloadable!]
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  4. Arndt, Channing, 1996. "An Introduction to Systematic Sensitivity Analysis via Gaussian Quadrature," GTAP Technical Papers 305, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University. [Downloadable!]
  5. Hertel, Thomas & David Hummels & Maros Ivanic & Roman Keeney, 2003. "How Confident Can We Be in CGE-Based Assessments of Free Trade Agreements?," GTAP Working Papers 1324, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University. [Downloadable!]
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  6. Martin, W. & Winters, L.A., 1995. "The Uruguay Round and the Developing Countries," World Bank - Discussion Papers 307, World Bank.
  7. Laszlo Matyas, 1997. "Proper Econometric Specification of the Gravity Model," The World Economy, Blackwell Publishing, vol. 20(3), pages 363-368, 05. [Downloadable!] (restricted)
  8. Clinton R. Shiells & Kenneth A. Reinert, 1993. "Armington Models and Terms-of-Trade Effects: Some Econometric Evidence for North America," Canadian Journal of Economics, Canadian Economics Association, vol. 26(2), pages 299-316, May. [Downloadable!] (restricted)
  9. Joseph F. Francois & Hans H. Glismann & Dean Spinanger, 2000. "The Cost of EU Trade Protection in Textiles and Clothing," Kiel Working Papers 997, Kiel Institute for the World Economy. [Downloadable!]
  10. Harrigan, James, 1993. "OECD imports and trade barriers in 1983," Journal of International Economics, Elsevier, vol. 35(1-2), pages 91-111, August. [Downloadable!] (restricted)
  11. Harrison, Glenn W & Rutherford, Thomas F & Tarr, David G, 1997. "Quantifying the Uruguay Round," Economic Journal, Royal Economic Society, vol. 107(444), pages 1405-30, September. [Downloadable!] (restricted)
  12. Leamer, Edward E., 1990. "Latin America as a target of trade barriers erected by the major developed countries in 1983," Journal of Development Economics, Elsevier, vol. 32(2), pages 337-368, April. [Downloadable!] (restricted)
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  1. Peter Nedergaard, 2009. "European Union Import Quotas on Chinese Textile and Clothing Exports in 2005: A Panic-Driven Commission or Rational Explanations?," Journal of Industry, Competition and Trade, Springer, vol. 9(1), pages 17-47, March. [Downloadable!] (restricted)
  2. Miriam Manchin & Annette O. Pelkmans-Balaoing, 2007. "Clothes without an Emperor: Analysis of the Preferential Tariffs in ASEAN," Development Working Papers 223, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
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