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China's Experience Under the Multifiber Arrangement (MFA) and the Agreement on Textiles and Clothing (ATC)

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Author Info
Irene Brambilla
Amit Khandelwal
Peter Schott

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Abstract

This paper analyzes China's experience under U.S. apparel and textile quotas. It makes use of a unique new database that tracks U.S. trading partners' performance under the quota regimes established by the global Multifiber Arrangement (1974 to 1995) and subsequent Agreement on Textiles and Clothing (1995 to 2005). We find that China was relatively more constrained under these regimes than other countries and that, as quotas were lifted, China's exports grew disproportionately. When the ATC finally ended in 2005, China's exports surged while those from nearly all other regions fell.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 13346.

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Date of creation: Aug 2007
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Handle: RePEc:nbr:nberwo:13346

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Find related papers by JEL classification:
F1 - International Economics - - Trade
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F15 - International Economics - - Trade - - - Economic Integration

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References listed on IDEAS
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  1. Diao, Xinshen & Somwaru, Agapi, 2001. "Impact of the MFA phase-out on the world economy," TMD discussion papers 79, International Food Policy Research Institute (IFPRI). [Downloadable!]
  2. Feenstra, Robert C, 1988. "Quality Change under Trade Restraints in Japanese Autos," The Quarterly Journal of Economics, MIT Press, vol. 103(1), pages 131-46, February. [Downloadable!] (restricted)
  3. Analysis, A Welfare & Das, Satya P. & Donnenfeld, Shabtai, 1987. "Trade policy and its impact on quality of imports," Journal of International Economics, Elsevier, vol. 23(1-2), pages 77-95, August. [Downloadable!] (restricted)
  4. James Harrigan & Geoffrey Barrows, 2006. "Testing the Theory of Trade Policy: Evidence from the Abrupt End of the Multifibre Arrangement," NBER Working Papers 12579, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Krishna, Kala, 1987. "Tariffs versus quotas with endogenous quality," Journal of International Economics, Elsevier, vol. 23(1-2), pages 97-112, August. [Downloadable!] (restricted)
  6. Khandelwal, Amit, 2006. "The Long and Short (of) Quality Ladders," MPRA Paper 4496, University Library of Munich, Germany, revised Aug 2008. [Downloadable!]
  7. Juan Carlos Hallak & Peter K. Schott, 2008. "Estimating Cross-Country Differences in Product Quality," NBER Working Papers 13807, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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