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Global Effects of Developed Country Trade Restrictions on Textiles and Apparel

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  • Trela, Irene
  • Whalley, John

Abstract

This paper uses an applied general equilibrium model to analyze the impacts of quota and tariff restrictions used by developed countries against textile and clothing imports from developing countries. In the model, countries are represented by their actual size in terms of GDP, weakening rent transfer effects compared to partial equilibrium analysis. Results, based on 1986 data, suggest annual global gains from elimination of quotas and tariffs of around $23 billion. In aggregate, developing countries gain around $8 billion, suggesting that gains to developing countries from improved access more than offset losses from foregone rent transfers as quotas and tariffs are abolished. Copyright 1990 by Royal Economic Society.

Suggested Citation

  • 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.
  • Handle: RePEc:ecj:econjl:v:100:y:1990:i:403:p:1190-1205
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    Cited by:

    1. Riccardo Faini & Jaime Melo & Wendy Takacs, 1995. "A Primer on the MFA Maze," The World Economy, Wiley Blackwell, vol. 18(1), pages 113-135, January.
    2. Spinanger, Dean, 1995. "Prosperity for all? Real adjustment in the MFA complex after Marrakech," Kiel Working Papers 681, Kiel Institute for the World Economy (IfW).
    3. Afia Malik, 2000. "Demand For Textile And Clothing Exports Of Pakistan," PIDE-Working Papers 2000:180, Pakistan Institute of Development Economics.
    4. Verikios, George, 2009. "Modelling the world wool market: A hybrid approach," Economic Modelling, Elsevier, vol. 26(2), pages 418-431, March.
    5. Skripnitchenko, Anatoliy & Abbott, Philip C., 2003. "Preferential Trade Arrangements In Apparel Exports From The Caribbean To The U.S.: A Dynamic Investment Approach," 2003 Annual meeting, July 27-30, Montreal, Canada 21977, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Morris Morkre & David Tarr, 2014. "Reforming Hungarian Agricultural Trade Policy: A Quantitative Evaluation," World Scientific Book Chapters,in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 3, pages 49-74 World Scientific Publishing Co. Pte. Ltd..
    7. Krishna, Kala & Martin, Will & Tan, Ling Hui, 1997. "Imputing license prices: limitations of a cost-based approach," Journal of Development Economics, Elsevier, vol. 52(2), pages 355-374, April.
    8. George Verikios, 2006. "Understanding the World Wool Market: Trade, Productivity and Grower Incomes. Part 1: Introduction," Economics Discussion / Working Papers 06-19, The University of Western Australia, Department of Economics.
    9. Bruce C. Brown, 2001. "Wages And Employment In The U.S. Apparel Industry," Contemporary Economic Policy, Western Economic Association International, vol. 19(4), pages 454-464, October.
    10. Ramos Mabugu & Margaret Chitiga, 2009. "Liberalising Trade In South Africa: A Survey Of Computable General Equilibrium Studies," South African Journal of Economics, Economic Society of South Africa, vol. 77(3), pages 445-464, September.
    11. Kenneth Hanson & Kenneth Reinert, 1997. "The Distributional Effects of U.S. Textile and Apparel Protection," International Economic Journal, Taylor & Francis Journals, vol. 11(3), pages 1-12.
    12. 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(01), pages 37-47, April.
    13. Trien T. Nguyen & Carlo Perroni & Randall M. Wigle, 1996. "Uruguay Round Impacts on Canada," Canadian Public Policy, University of Toronto Press, vol. 22(4), pages 342-355, December.
    14. Attiya Y. Javed & Haseeb Ahmad Bhatti, 2000. "How to Live in a Textile Quota-free World," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(4), pages 609-628.
    15. Rehbein, Kathleen & Starks, Laura T., 1995. "Changes in U.S. trade policies: the wealth effects on Japanese steel firms," Japan and the World Economy, Elsevier, vol. 7(3), pages 309-327, September.
    16. Elena Ianchovichina & Maros Ivanic, 2016. "Economic Effects of the Syrian War and the Spread of the Islamic State on the Levant," The World Economy, Wiley Blackwell, vol. 39(10), pages 1584-1627, October.
    17. Eric Hutton & John Whalley, 1994. "Reference Point Dependence for Specification Bias from Quality Upgrading," NBER Working Papers 4816, National Bureau of Economic Research, Inc.
    18. Peter Walkenhorst, 2004. "Liberalising Trade in Textiles and Clothing: A Survey of Quantitative Studies," International Trade 0401007, EconWPA.
    19. Sally Baden, 2002. "Trade Policy, Retail Markets and Value Chain Restructuring in the EU Clothing Sector," PRUS Working Papers 09, Poverty Research Unit at Sussex, University of Sussex.
    20. De Santis, Roberto A., 1997. "Why exporting countries agree voluntary export restraints: The oligopolistic power of the foreign supplier," Kiel Working Papers 841, Kiel Institute for the World Economy (IfW).
    21. Sonali Jain-Chandra & Ananthakrishnan Prasad, 2005. "The Impact on India of Trade Liberalization in the Textiles and Clothing Sector," IMF Working Papers 05/214, International Monetary Fund.
    22. D. Greenaway, 1991. "The Uruguay Round Of Multilateral Trade Negotiations: Last Chance For Gatt?," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(3), pages 365-379.

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