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The Cost of EU Trade Protection in Textiles and Clothing

  • Joseph F. Francois
  • Hans H. Glismann
  • Dean Spinanger

This paper estimates the costs of EU restraints on trade in textiles and clothing. After explaining the methods used, we examine the impact of an opening up of EU trade in textiles and clothing, inter alia to those economies where the textile and clothing (T&C) industries command sizeable shares of exports and output. The estimates are based, firstly, on a partial equilibrium analysis allowing us to directly cover the effects of liberalization on the importation, production and consumption of T&C products; secondly, a general equilibrium analysis incorporates the wide-sweeping indirect costs of ATC within the EU. It turns out that in 1997 EU consumers paid roughly ECU 25 billion more for T&C products, due to quotas, tariffs and indirect effects.

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File URL: https://www.ifw-members.ifw-kiel.de/publications/the-cost-of-eu-trade-protection-in-textiles-and-clothing/kap997.pdf
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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 997.

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Length: 123 pages
Date of creation: Aug 2000
Date of revision:
Handle: RePEc:kie:kieliw:997
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  1. Smith, M. A. M., 1976. "Trade, growth and consumption in alternative models of capital accumulation," Journal of International Economics, Elsevier, vol. 6(4), pages 371-384, November.
  2. Richard E. Baldwin & Rikard Forslid & Jan Haaland, 1995. "Investment Creation and Investment Diversion: Simulation Analysis of theSingle Market Programme," NBER Working Papers 5364, National Bureau of Economic Research, Inc.
  3. Baldwin, Richard, 1990. "Measurable Dynamic Gains from Trade," Working Paper Series 270, Research Institute of Industrial Economics.
  4. Sawyer, W. Charles & Sprinkle, Richard L., 1997. "The Demand for Imports and Exports in Japan: A Survey," Journal of the Japanese and International Economies, Elsevier, vol. 11(2), pages 247-259, June.
  5. Baldwin, Richard & Francois, Joseph, 1997. "Preferential Trade Liberalization in the North Atlantic," CEPR Discussion Papers 1611, C.E.P.R. Discussion Papers.
  6. Francois, Joseph F, 1994. "Global Production and Trade: Factor Migration and Commercial Policy with International Scale Economies," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(3), pages 565-81, August.
  7. Francois, Joseph & McDonald, Brad & Nordström, Håkan, 1996. "A User's Guide to Uruguay Round Assessments," CEPR Discussion Papers 1410, C.E.P.R. Discussion Papers.
  8. Spinanger, Dean, 1997. "The WTO after the Singapore ministerial: Much to do about what?," Kiel Discussion Papers 304, Kiel Institute for the World Economy (IfW).
  9. Nam Jeon, Bang & von Furstenberg, George M., 1986. "Techniques for measuring the welfare effects of protection: Appraising the choices," Journal of Policy Modeling, Elsevier, vol. 8(2), pages 273-303.
  10. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
  11. Francois, Joseph, 1998. "Scale Economies and Imperfect Competition in the GTAP Model," GTAP Technical Papers 317, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  12. repec:cup:cbooks:9780521586016 is not listed on IDEAS
  13. Houthakker, Hendrik S & Magee, Stephen P, 1969. "Income and Price Elasticities in World Trade," The Review of Economics and Statistics, MIT Press, vol. 51(2), pages 111-25, May.
  14. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December.
  15. Harry G. Johnson, 1960. "The Cost of Protection and the Scientific Tariff," Journal of Political Economy, University of Chicago Press, vol. 68, pages 327.
  16. Smith, M A M, 1977. "Capital Accumulation in the Open Two-Sector Economy," Economic Journal, Royal Economic Society, vol. 87(346), pages 273-82, June.
  17. De Melo, Jaime & Winters, L. Alan, 1989. "Price and quality effects of VERs - revisited : a case study of Korean footwear exports," Policy Research Working Paper Series 216, The World Bank.
  18. J. H. Chan-Lee, 1971. "Intercountry Cost and Price Comparisons (Comparaison de prix et de coûts entre certains pays industriels) (Comparaciones de costos y precios entre países)," IMF Staff Papers, Palgrave Macmillan, vol. 18(2), pages 332-388, July.
  19. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
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