A Primer on the MFA Maze
The paper identifies the potential sources of allocative inefficiency generated by the Multi-Fiber Agreements (MFA) and examines the evidence for such inefficiencies. Five sources of inefficiency are identified relating to inefficient allocations across countries, across consumers, and among firms within constrained countries. Evidence is first provided from trends in import shares for aggregate categories of textiles and clothing before and during the MFA. Second, evidence is provided from a detailed examination of quota utilization rates and price differentials among EC importing countries.
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|Date of creation:||Sep 1992|
|Date of revision:|
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References listed on IDEAS
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- Bark, Taeho & de Melo, Jaime, 1988.
"Export Quota Allocations, Export Earnings, and Market Diversification,"
World Bank Economic Review,
World Bank Group, vol. 2(3), pages 341-48, September.
- Bark, Taeho & de Melo, Jaime, 1988. "Export quota allocations, export earnings and market diversifications," Policy Research Working Paper Series 89, The World Bank.
- Erzan, Refik & Krishna, Kala & Ling Hui Tan, 1991.
"Rent sharing in the multi-fibre arrangement : theory and evidence from US apparel imports from Hong Kong,"
Policy Research Working Paper Series
597, The World Bank.
- 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.
- Kala Krishna & Refik Erzan & Ling Hui Tan, 1991. "Rent Sharing in the Multi-Fibre Arrangement: Theory and Evidence from US Apparel Imports from Hong Kong," NBER Working Papers 3673, National Bureau of Economic Research, Inc.
- Krishna, K. & Erzan, R. & Tan, L.H., 1991. "Rent Sharing In The Multi-Fibre Arrangement: Theory And Evidence From Us Apparel Imports From Hong Kong," Harvard Institute of Economic Research Working Papers 1549, Harvard - Institute of Economic Research.
- Erzan, Refik & Goto, Junichi & Holmes, Paula, 1989. "Effects of the multifibre arrangement on developing countries'trade : an empirical investigation," Policy Research Working Paper Series 297, The World Bank.
- Faini, Riccardo & Heimler, Alberto, 1991. "The Quality of Production of Textiles and Clothing and the Completion of the Internal Market," CEPR Discussion Papers 508, C.E.P.R. Discussion Papers.
- Faini, Riccardo & de Melo, Jaime & Takacs, Wendy, 1992. "The effects of EC-92 on the multi-fibre arrangement," European Economic Review, Elsevier, vol. 36(2-3), pages 527-538, April.
- 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.
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