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Policy Implications of Textile Trade Management and The U.S. Cotton Industry

  • Shui, Shangnan
  • Wohlgenant, M.
  • Beghin, John C.

This study investigates the effects on the U.S. cotton industry of textile trade liberalization using a multi-market equilibrium displacement model. The simulation results suggest that textile trade liberalization would induce small changes in the total demand for U.S. cotton but would affect considerable y U.S. cotton demand structure, making U. S, cotton growers more dependent on world markets. The welfare analyses reveal that textile trade liberalization would result in a small welfare loss for U, S. cotton producers. As expected, textile trade liberalization also would lead to considerable substitution of imports for domestic production and substantial declines in prices of all textile products.

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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 1600.

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Date of creation: 01 Apr 1993
Date of revision:
Publication status: Published in Agricultural and Resource Economics Review, April 1993, vol. 22 no. 1, pp. 37-47
Handle: RePEc:isu:genres:1600
Contact details of provider: Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
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  1. Shui, Shangnan & Beghin, John & Wohlgenant, Michael, 1992. "Textile Trade Liberalization and its Welfare Implications for US Cotton Producers," Occasional Paper Series No. 6 197875, International Association of Agricultural Economists.
  2. Duffy, Patricia A. & Richardson, James W. & Wohlgenant, Michael K., 1987. "Regional Cotton Acreage Response," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(01), July.
  3. Bigman, David, 1978. "Derived Demand and Distributive Shares in a Multifactor Multisector Model," American Economic Review, American Economic Association, vol. 68(5), pages 923-28, December.
  4. Anderson, James E & Neary, J Peter, 1992. "Trade Reform with Quotas, Partial Rent Retention, and Tariffs," Econometrica, Econometric Society, vol. 60(1), pages 57-76, January.
  5. Shui, Shangnan & Beghin, John C. & Wohlgenant, M., 1993. "Impact of Technical Change, Scale Effects and Forward Ordering on U.S. Fiber Demands, The," Staff General Research Papers 1567, Iowa State University, Department of Economics.
  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.
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