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The End of Textiles Quotas: A Case Study of the Impact on Bangladesh

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Author Info
Yongzheng Yang
Montfort Mlachila
Abstract

This paper evaluates the effects on the Bangladeshi economy of phasing out textile and clothing (T&C) quotas currently maintained by industrial countries. The planned abolition of the quotas under the Agreement on Textiles and Clothing in 2005 will alter the competitiveness of various exporting countries. Bangladesh relies heavily on textile and clothing exports and is potentially very vulnerable to this change in competitiveness. Based on assessments of quota restrictiveness and export similarity, and an analysis of its supply constraints, the paper concludes that Bangladesh could face significant pressure on its balance of payments, output, and employment when the quotas are eliminated.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 04/108.

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Length: 37 pages
Date of creation: 14 Jul 2004
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Handle: RePEc:imf:imfwpa:04/108

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Related research
Keywords: Import quotas ; Bangladesh ; Multifiber Arrangements ; World Trade Organization ; Access limits ; Export competitiveness ;

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This paper has been announced in the following NEP Reports: 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. Krishna, Kala & Erzan, Refik & Tan, Ling Hui, 1994. "Rent Sharing in the Multi-fibre Arrangement: Theory and Evidence from U.S. Apparel Imports from Hong Kong," Review of International Economics, Blackwell Publishing, vol. 2(1), pages 62-73, February.
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  2. Harrison, W Jill & Pearson, K R, 1996. "Computing Solutions for Large General Equilibrium Models Using GEMPACK," Computational Economics, Springer, vol. 9(2), pages 83-127, May.
    Other versions:
  3. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June. [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. Delpeuch, Claire, 2007. "EU and US safeguards against Chinese textile exports: What consequences for West African cotton-producing countries?," MPRA Paper 2319, University Library of Munich, Germany. [Downloadable!]
  2. A. Prasad & Sonali Jain-Chandra, 2005. "The Impact on India of Trade Liberalization in the Textiles and Clothing Sector," IMF Working Papers 05/214, International Monetary Fund. [Downloadable!]
  3. Khondker, Bazlul H. & Raihan, Selim, 2004. "Welfare and Poverty Impacts of Policy Reforms in Bangladesh: A General Equilibrium Approach," Centre on Regulation and Competition (CRC) Working papers 30588, University of Manchester, Institute for Development Policy and Management (IDPM). [Downloadable!]
  4. Jörg MAYER, 2004. "Not Totally Naked: Textiles And Clothing Trade In A Quota Free Environment," UNCTAD Discussion Papers 176, United Nations Conference on Trade and Development. [Downloadable!]
  5. Jean-Jacques Hallaert, 2007. "Can Regional Integration Accelerate Development in Africa? CGE Model Simulations of the Impact of the SADC FTA on the Republic of Madagascar," IMF Working Papers 07/66, International Monetary Fund. [Downloadable!]
  6. Nabil Annabi & H. Khondker Bazlul & Selim Raihan & John Cockburn & Bernard Decaluwe, 2005. "Implications of WTO Agreements and Domestic Trade Policy Reforms for Poverty in Bangladesh: Short vs. Long Run," Cahiers de recherche MPIA 2005-02, PEP-MPIA. [Downloadable!]
  7. Iimi, Atsushi, 2007. "Infrastructure and trade preferences for the livestock sector : empirical evidence from the beef industry in Africa," Policy Research Working Paper Series 4201, The World Bank. [Downloadable!]
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