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The Distributional Effects of U.S. Textile and Apparel Protection

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  • Kenneth Hanson
  • Kenneth Reinert

Abstract

A number of studies have estimated the effects of U.S. textile and apparel protection. Most of these studies have not addressed the impact of these protective measures on the distribution of household income. This paper addresses the income distribution issue using a computable general equilibrium model of the United States with a disaggregated household sector. We find that liberalization of textile and apparel import restraints improves the real income of all household categories, but does so more for higher income households. Therefore, liberalization of these protective measures will be slightly regressive. [F13, F14]

Suggested Citation

  • 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.
  • Handle: RePEc:taf:intecj:v:11:y:1997:i:3:p:1-12
    DOI: 10.1080/10168739700000015
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    References listed on IDEAS

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    1. Jacobson, Louis S & LaLonde, Robert J & Sullivan, Daniel G, 1993. "Earnings Losses of Displaced Workers," American Economic Review, American Economic Association, vol. 83(4), pages 685-709, September.
    2. Kenneth A. Reinert, 1993. "Textile and Apparel Protection in the United States: A General Equilibrium Analysis," The World Economy, Wiley Blackwell, vol. 16(3), pages 359-376, May.
    3. Devarajan, Shantayanan & Rodrik, Dani, 1991. "Pro-competitive effects of trade reform : Results from a CGE model of Cameroon," European Economic Review, Elsevier, vol. 35(5), pages 1157-1184, July.
    4. Gary Burtless, 1995. "International Trade and the Rise in Earnings Inequality," Journal of Economic Literature, American Economic Association, vol. 33(2), pages 800-816, June.
    5. Krishna, Kala & Erzan, Refik & Tan, Ling Hui, 1994. "Rent Sharing in the Multi-fibre Arrangement: Theory and Evidence from U.S. Apparel Imports from Hong Kong," Review of International Economics, Wiley Blackwell, vol. 2(1), pages 62-73, February.
    6. 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.
    7. Maneschi, Andrea, 1990. "Income Distribution and Shadow Pricing in Open Economies," The Economic Record, The Economic Society of Australia, vol. 66(192), pages 23-31, March.
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    Cited by:

    1. Meenu Tiwari, 2006. "The Role of Price and cost Competitiveness in Apparel Exports, post MFA: A Review," Working Papers id:485, eSocialSciences.
    2. Robert Shelburne, 2006. "A Utilitarian Welfare Analysis of Trade Liberalization," ECE Discussion Papers Series 2006_4, UNECE.
    3. Peter Walkenhorst, 2004. "Liberalising Trade in Textiles and Clothing: A Survey of Quantitative Studies," International Trade 0401007, EconWPA.

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