Internal Quota Allocation Schemes and the Costs of the MFA
This paper suggests that schemes used within developing countries to allocate textile export quota among domestic producers typically have more severe negative effects on developing country economic performance than the MFA export quotas themselves. We summarize allocation schemes in 17 countries, highlighting common 'lock-in' and 'rent dissipation' effects of such schemes. We then use a global general equilibrium model to evaluate the effects of MFA removal with and without these additional effects. Results indicate that estimates of gains to developing countries from an MFA removal are larger and by significant orders of magnitude (we suggest a factor of 8) when internal quota allocation schemes are also included. Removing the negative effects of quota allocation schemes thus seems to clearly dominate traditional access benefits to developing countries from MFA removal.
|Date of creation:||Feb 1991|
|Date of revision:|
|Publication status:||published as Trela, Irene & Whalley, John, 1995. "Internal Quota-Allocation Schemes and the Costs of the MFA," Review of International Economics, Blackwell Publishing, vol. 3(3), pages 284-306, October.|
|Contact details of provider:|| Postal: |
Web page: http://www.nber.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Falvey, Rodney E, 1979. "The Composition of Trade within Import-restricted Product Categories," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 1105-14, October.
- Shoven,John B. & Whalley,John, 1992.
"Applying General Equilibrium,"
Cambridge University Press, number 9780521319867.
- Trela, I. & Whalley, J., 1989.
"Unravelling The Threads Of The Mfa,"
University of Western Ontario, The Centre for the Study of International Economic Relations Working Papers
8904c, University of Western Ontario, The Centre for the Study of International Economic Relations.
- Dawkins, Christina & Srinivasan, T.N. & Whalley, John, 2001. "Calibration," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 58, pages 3653-3703 Elsevier.
- Carl B. Hamilton, 1988. "Restrictiveness and International Transmission of the "New" Protectionism," NBER Chapters, in: Issues in US-EC Trade Relations, pages 201-230 National Bureau of Economic Research, Inc.
- Hamilton, Carl, 1986. "An Assessment of Voluntary Restraints on Hong Kong Exports to Europe and the USA," Economica, London School of Economics and Political Science, vol. 53(211), pages 339-50, August.
- Glenn Jenkins, 1985. "Costs And Consequences Of The New Protectionism: The Case Of Canada’S Clothing Sector," Development Discussion Papers 1985-04, JDI Executive Programs.
- Cable, Vincent, 1987. "Textiles and Clothing in a New Round of Trade Negotiations," World Bank Economic Review, World Bank Group, vol. 1(4), pages 619-46, September.
- Shoven, John B & Whalley, John, 1984. "Applied General-Equilibrium Models of Taxation and International Trade: An Introduction and Survey," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1007-51, September.
- John Whalley, 1984. "Trade Liberalization among Major World Trading Areas," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262231204, June.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:3627. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.