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A Primer on the MFA Maze

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Author Info
de Melo, Jaime
Faini, Riccardo

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Abstract

The paper identifies the potential sources of allocative inefficiency generated by the Multi-Fiber Agreements (MFA) and examines the evidence for such inefficiencies. Five sources of inefficiency are identified relating to inefficient allocations across countries, across consumers, and among firms within constrained countries. Evidence is first provided from trends in import shares for aggregate categories of textiles and clothing before and during the MFA. Second, evidence is provided from a detailed examination of quota utilization rates and price differentials among EC importing countries.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 716.

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Date of creation: Sep 1992
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Handle: RePEc:cpr:ceprdp:716

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Related research
Keywords: Allocative Efficiency; Multi-Fiber Agreements; Quotas;

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Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

References listed on IDEAS
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. Trela, Irene & Whalley, John, 1990. "Global Effects of Developed Country Trade Restrictions on Textiles and Apparel," Economic Journal, Royal Economic Society, vol. 100(403), pages 1190-1205, December. [Downloadable!] (restricted)
  2. Bark, Taeho & de Melo, Jaime, 1988. "Export Quota Allocations, Export Earnings, and Market Diversification," World Bank Economic Review, Oxford University Press, vol. 2(3), pages 341-48, September.
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  3. Kala Krishna & Refik Erzan & Ling Hui Tan, 1991. "Rent Sharing in the Multi-Fibre Arrangement: Theory and Evidence from US Apparel Imports from Hong Kong," NBER Working Papers 3673, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Faini, Riccardo & Heimler, Alberto, 1991. "The Quality of Production of Textiles and Clothing and the Completion of the Internal Market," CEPR Discussion Papers 508, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. Faini, Riccardo & de Melo, Jaime & Takacs, Wendy, 1992. "The effects of EC-92 on the multi-fibre arrangement," European Economic Review, Elsevier, vol. 36(2-3), pages 527-538, April. [Downloadable!] (restricted)
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Cited by:
(explanations, 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. Shumei Gao & Jihe Song, 2004. "Quota Use under VERs: A theoretical framework and some evidence on MFA quota use," Working Papers E03, Department of Economics, School of Management and Languages, Heriot Watt University. [Downloadable!]
  2. Krishna, Kala & Ling Hui Tan, 1992. "Rent-sharing in the multi-fibre arrangement : evidence from U.S. - Hong Kong trade in apparel," Policy Research Working Paper Series 1003, The World Bank. [Downloadable!]
  3. Janda, Karel, 2009. "Signaling the Strength of a Market Entrant," MPRA Paper 17007, University Library of Munich, Germany. [Downloadable!]
  4. Ilse Scheerlinck & Luc Hens & Rosette S’Jegers, 1996. "Free trade or protection? belgian textile and clothing firms’ trade preferences," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 132(4), pages 723-739, December. [Downloadable!] (restricted)
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