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Trade Restrictions, Competition, and Firm Behavior: India’s Experience in the US Market in the Post-MFA Era

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  • Tanveer Ahmad Khan

Abstract

Employing a difference-in-differences estimation technique on firm and product level data on Indian textile and clothing exports to the US over 2000 to 2010, we find that MFA quota removal was associated with a rise in export revenues, sales, and total assets of constrained products relative to unconstrained products. We find that the rise in export revenue was due to the rise in export quantity rather than the rise in prices. We also find that trade liberalization in the textile sector was associated with a fall in the export value and prices of Indian products in the US market.

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  • Tanveer Ahmad Khan, 2023. "Trade Restrictions, Competition, and Firm Behavior: India’s Experience in the US Market in the Post-MFA Era," The International Trade Journal, Taylor & Francis Journals, vol. 37(3), pages 290-313, May.
    • Handle: RePEc:taf:uitjxx:v:37:y:2023:i:3:p:290-313
    DOI: 10.1080/08853908.2022.2032487
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    Cited by:

    1. Huaming Wang & Xing Huang & Bo Wang, 2024. "The Impact of Environmental Public Opinion Pressure on Green Innovation in Construction Enterprises: The Mediating Role of Green Corporate Image and the Regulatory Effect of Market Competition," Sustainability, MDPI, vol. 16(17), pages 1-16, August.

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