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Policy Implications of Textile Trade Management and the U.S. Cotton Industry

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  • Shui, Shangnan
  • Wohlgenant, Michael K.
  • Beghin, John C.

Abstract

This study investigates the effects on the U.S. cotton industry of textile trade liberalization using a multi-market equilibrium displacement model. The simulation results suggest that textile trade liberalization would induce small changes in the total demand for U.S. cotton but would affect considerably U.S. cotton demand structure, making U.S. cotton growers more dependent on world markets. The welfare analyses reveal that textile trade liberalization would result in a small welfare loss for U.S. cotton producers. As expected, textile trade liberalization also would lead to considerable substitution of imports for domestic production and substantial declines in prices of all textile products.

Suggested Citation

  • Shui, Shangnan & Wohlgenant, Michael K. & Beghin, John C., 1993. "Policy Implications of Textile Trade Management and the U.S. Cotton Industry," Agricultural and Resource Economics Review, Cambridge University Press, vol. 22(1), pages 37-47, April.
    • Handle: RePEc:cup:agrerw:v:22:y:1993:i:01:p:37-47_00
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