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The End of Textiles Quotas; A Case Study of the Impacton Bangladesh


  • Montfort Mlachila
  • Yongzheng Yang


This paper evaluates the effects on the Bangladeshi economy of phasing out textile and clothing (T&C) quotas currently maintained by industrial countries. The planned abolition of the quotas under the Agreement on Textiles and Clothing in 2005 will alter the competitiveness of various exporting countries. Bangladesh relies heavily on textile and clothing exports and is potentially very vulnerable to this change in competitiveness. Based on assessments of quota restrictiveness and export similarity, and an analysis of its supply constraints, the paper concludes that Bangladesh could face significant pressure on its balance of payments, output, and employment when the quotas are eliminated.

Suggested Citation

  • Montfort Mlachila & Yongzheng Yang, 2004. "The End of Textiles Quotas; A Case Study of the Impacton Bangladesh," IMF Working Papers 04/108, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:04/108

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    References listed on IDEAS

    1. Harrison, W Jill & Pearson, K R, 1996. "Computing Solutions for Large General Equilibrium Models Using GEMPACK," Computational Economics, Springer;Society for Computational Economics, vol. 9(2), pages 83-127, May.
    2. 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.
    3. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
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    Cited by:

    1. Cherkashin, Ivan & Demidova, Svetlana & Kee, Hiau Looi & Krishna, Kala, 2015. "Firm heterogeneity and costly trade: A new estimation strategy and policy experiments," Journal of International Economics, Elsevier, vol. 96(1), pages 18-36.
    2. Ahmed, Faisal Z. & Greenleaf, Anne & Sacks, Audrey, 2014. "The Paradox of Export Growth in Areas of Weak Governance: The Case of the Ready Made Garment Sector in Bangladesh," World Development, Elsevier, vol. 56(C), pages 258-271.
    3. 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.
    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. World Bank, 2006. "Fostering Higher Growth and Employment in the Kingdom of Morocco," World Bank Publications, The World Bank, number 7114, June.
    6. Mustafizur Rahman & Asif Anwar, 2006. "Bangladesh Apparels Export to the US Market - An Examination of Her Competitiveness vis-à-vis China," Trade Working Papers 22295, East Asian Bureau of Economic Research.
    7. Jörg MAYER, 2004. "Not Totally Naked: Textiles And Clothing Trade In A Quota Free Environment," UNCTAD Discussion Papers 176, United Nations Conference on Trade and Development.
    8. Walkenhorst, Peter & Malouche, Mariem, 2006. "Trade Policy and Export Performance in Morocco," MPRA Paper 23119, University Library of Munich, Germany.
    9. Iimi, Atsushi, 2007. "Infrastructure and trade preferences for the livestock sector : empirical evidence from the beef industry in Africa," Policy Research Working Paper Series 4201, The World Bank.
    10. Ahmed, Nazneen & Peerlings, Jack H.M., 2009. "Addressing Workers' Rights in the Textile and Apparel Industries: Consequences for the Bangladesh Economy," World Development, Elsevier, vol. 37(3), pages 661-675, March.
    11. Quader, Syed Manzur, 2004. "Floating Exchange Rate Regime," MPRA Paper 26163, University Library of Munich, Germany.
    12. 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.
    13. Sak Sambath & Ryuta Ray Kato, 2009. "Future Prospects of the Garment Industry of Cambodia," Working Papers EMS_2009_12, Research Institute, International University of Japan.
    14. Delpeuch, Claire, 2007. "EU and US safeguards against Chinese textile exports: What consequences for West African cotton-producing countries?," MPRA Paper 2319, University Library of Munich, Germany.
    15. 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).
    16. Jean-Jacques Hallaert, 2007. "Can Regional Integration Accelerate Development in Africa? CGE Model Simulations of the Impact of the SADC FTA on the Republic of Madagascar," IMF Working Papers 07/66, International Monetary Fund.
    17. International Monetary Fund, 2005. "Mongolia; Selected Issues and Statistical Appendix," IMF Staff Country Reports 05/400, International Monetary Fund.
    18. Kyvik Nord°as, Hildegunn., 2005. "Labour implications of the textiles and clothing quota phase-out," ILO Working Papers 993744523402676, International Labour Organization.
    19. repec:dau:papers:123456789/4443 is not listed on IDEAS
    20. Sonali Jain-Chandra & Ananthakrishnan Prasad, 2005. "The Impact on India of Trade Liberalization in the Textiles and Clothing Sector," IMF Working Papers 05/214, International Monetary Fund.


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