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Non-linear panel estimation of import quotas: The evolution of quota premiums under the ATC

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  • Francois, Joseph
  • Woerz, Julia

Abstract

We develop a panel-based inequality constrained least-squares (ICLS) framework for estimating the export tax equivalent (ETE) of quotas where the ETEs vary over time. Working with a panel of bilateral data on textile and clothing trade,underlying bilateral tariffs, and the country-pair coverage of quotas under the WTO's Agreement on Textiles and Clothing (ATC), we use this framework to examine the evolution of market access conditions in the textile and clothing sectors. Our estimating framework takes advantage of the panel nature of trade data when calculating export tax equivalents while allowing for inequality constraints on the quota premium estimates. We also implement quadrature methods for calculating confidence intervals for our regression-based NTB measures.

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  • Francois, Joseph & Woerz, Julia, 2009. "Non-linear panel estimation of import quotas: The evolution of quota premiums under the ATC," Journal of International Economics, Elsevier, vol. 78(2), pages 181-191, July.
  • Handle: RePEc:eee:inecon:v:78:y:2009:i:2:p:181-191
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    Cited by:

    1. Di Comite, Francesco & Rovegno, Laura & Vandenbussche, Hylke & Viegelahn, Christian, 2011. "Moving up the Quality ladder? EU-China Trade Dynamics in Clothing," CEPR Discussion Papers 8725, C.E.P.R. Discussion Papers.
    2. Horst Raff & Joachim Wagner, 2010. "Intra-industry Adjustment to Import Competition: Theory and Application to the German Clothing Industry," The World Economy, Wiley Blackwell, vol. 33(8), pages 1006-1022, August.
    3. Joseph Francois, 2010. "Comment on "China's Experience under the Multifiber Arrangement (MFA) and the Agreement on Textile and Clothing (ATC)"," NBER Chapters,in: China's Growing Role in World Trade, pages 387-395 National Bureau of Economic Research, Inc.
    4. Defever, Fabrice & Heid, Benedikt & Larch, Mario, 2015. "Spatial exporters," Journal of International Economics, Elsevier, vol. 95(1), pages 145-156.

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