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The Impacton India of Trade Liberalization in the Textiles and Clothing Sector

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  • Sonali Jain-Chandra
  • A. Prasad
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    Abstract

    We analyze the impact of the elimination of textile and clothing (T&C) quotas in 2005 on India. Our simulations suggest that while Indian exports of T&C will continue to expand in the presence of the safeguards on China, they will be affected adversely once these safeguards are lifted. We argue that India could emerge much stronger and expand its trade in T&C at a much faster pace, if some of the key domestic structural weaknesses are overcome.

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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=18594
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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 05/214.

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    Length: 39
    Date of creation: 01 Nov 2005
    Date of revision:
    Handle: RePEc:imf:imfwpa:05/214

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    Related research

    Keywords: Economic models; clothing exports; exporting countries; export tax; trade liberalization; value of exports; export prices; exporters; export volumes; supply chain; imports of textiles; terms of trade; apparel exports; export tax equivalents; international trade; world trade; aggregate export prices; export market; export import bank; world trade organization; importing countries; tariff rates; export quotas; export taxes; export processing zones; export growth; equilibrium model; trade effect; transition period; export markets; export processing; trade agreements; quota rents; competitive advantage; developing country exports; export potential; regional trade agreements; export market share; world exports; preferential access; trade facilitation; export sectors; trade regime; trade data; global trade analysis; global trade; apparel export; domestic reforms; trade flows; high tariffs; trade agreement; textile imports; total exports; free trade agreement; transport costs; trade protection; applied tariff; export basket; quota-free access; share of exports; export group; import quotas; export revenue; vertical integration; trade facilitation measures; quantitative restrictions; global markets; free trade; global export; preference schemes; regional trade; impact of trade liberalization; global welfare; impact of trade; income losses; andean trade preferences; trade restrictions; bilateral trade; supply chain management; world economy; world markets; trade preferences; apparel trade; dynamic effects; exporting developing countries; skilled labor; global production; liberalized trade; domestic suppliers; duty drawback schemes; trade patterns; import duties; tax incentives; trade policies; export values; preferential trade agreements; venture capital; transfer of technology; competitive advantages; international standards; duty-free access; regulatory framework; unskilled labor; preferential trade; domestic market; prices of exports; competitive price; exported products;

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    References

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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.:
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    1. Valerie Cerra & Sandra A. Rivera & Sweta C. Saxena, 2005. "Crouching Tiger, Hidden Dragon: What Are the Consequences of China’s WTO Entry for India’s Trade?," International Trade 0508005, EconWPA.
    2. 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.
    3. David L. Hummels & Georg Schaur, 2013. "Time as a Trade Barrier," American Economic Review, American Economic Association, vol. 103(7), pages 2935-59, December.
    4. International Monetary Fund, 2005. "Crouching Tiger, Hidden Dragon," IMF Working Papers 05/101, International Monetary Fund.
    5. Kathuria, Sanjay & Martin, Will & Bhardwaj, Anjali, 2001. "Implications for South Asian countries for abolishing the Multifibre Arrangement," Policy Research Working Paper Series 2721, The World Bank.
    6. 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.
    7. Montfort Mlachila & Yongzheng Yang, 2004. "The End of Textiles Quotas," IMF Working Papers 04/108, International Monetary Fund.
    8. Richard Avisse & Michel Fouquin, 2001. "Textiles and Clothing: the End of Discriminatory Protection," La Lettre du CEPII, CEPII research center, issue 198.
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    Cited by:
    1. Geoffrey N. Keim & Beth Anne Wilson, 2007. "India's future: it's about jobs," International Finance Discussion Papers 913, Board of Governors of the Federal Reserve System (U.S.).

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