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Impact of MFA Phase-out on the World Economy - An Intertemporal, Global General Equilibrium Analysis

Author

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  • Diao, Xinshen
  • Somwaru, Agapi

Abstract

International trade in textile and apparel has been governed by quantitative restrictions under the Multi-Fiber Arrangement (MFA) and earlier agreements for more than 30 years. One of the major accomplishments of the Uruguay Round was the Agreement on Textiles and Clothing (ATC), which provides for the dismantling of these restrictions. Under the Uruguay Round ATC, the MFA restrictions are to be phased out over a 10-year period and are scheduled to end by the year 2005. This study evaluates the possible effect of the MFA phase-out on the world economy, especially the effect on the structure of world textile markets. As textile and apparel industries have been important sources of growth for many developing countries, this study will focus on the effect of the MFA phase-out on the developing countries.

Suggested Citation

  • Diao, Xinshen & Somwaru, Agapi, 2001. "Impact of MFA Phase-out on the World Economy - An Intertemporal, Global General Equilibrium Analysis," Conference papers 330903, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:330903
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    2. Abraham, Vinoj & Sasikumar, S.K., 2010. "Labour Cost and Export Behaviour of Firms in Indian Textile and Clothing Industry," MPRA Paper 22784, University Library of Munich, Germany.
    3. Bouët, Antoine & Fontagné, Lionel & Mimouni, Mondher, 2003. "Direct Measure of Protection: A Rehabilitation," Conference papers 331157, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Jean-Raphael Chaponniere & Jean-Pierre Cling & Mohamed Ali Marouani, 2004. "Les conséquences pour les pays en développement de la suppression des quotas dans le textile habillement : le cas de la Tunisie," Working Papers DT/2004/16, DIAL (Développement, Institutions et Mondialisation), revised Dec 2004.
    5. Andriamananjara, Soamiely & Balistreri, Edward J. & Ross, Martin T., 2006. "State-level equity and the demise of the Agreement on Textiles and Clothing," The North American Journal of Economics and Finance, Elsevier, vol. 17(1), pages 17-33, March.
    6. Nabil Annabi & H. Khondker Bazlul & Selim Raihan & John Cockburn & Bernard Decaluwe, 2005. "Implications of WTO Agreements and Domestic Trade Policy Reforms for Poverty in Bangladesh: Short vs. Long Run," Working Papers MPIA 2005-02, PEP-MPIA.
    7. Irene Brambilla & Amit K. Khandelwal & Peter K. Schott, 2010. "China's Experience under the Multi-Fiber Arrangement (MFA) and the Agreement on Textiles and Clothing (ATC)," NBER Chapters, in: China's Growing Role in World Trade, pages 345-387, National Bureau of Economic Research, Inc.
    8. Khondker, Bazlul H. & Raihan, Selim, 2004. "Welfare and Poverty Impacts of Policy Reforms in Bangladesh: A General Equilibrium Approach," Centre on Regulation and Competition (CRC) Working papers 30588, University of Manchester, Institute for Development Policy and Management (IDPM).
    9. Peter Walkenhorst, 2004. "Liberalising Trade in Textiles and Clothing: A Survey of Quantitative Studies," International Trade 0401007, University Library of Munich, Germany.

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