GTAP Resources: Resource Display
GTAP Resource #1577 |
---|
"MFA Quota Removal and Global Textile and Cotton Trade: Estimating Quota Trade Restrictiveness and Quantifying Post-MFA Trade Patterns" by Elbehri, Aziz Abstract This paper develops new adaptations to the GTAP framework and uses them to examine the global trade implications of MFA quota removal on cotton and textile industry. The analysis is based on a new set of MFA-trade restrictiveness estimates based on 2002 product- level quota trade and price data. Using a multi-regional general equilibrium, the analysis provides comparative static assessment of changes in global trade patterns in post-MFA. The analysis also takes into account the MFA- induced implicit tax on cotton and allows for inter-fiber substitution. The model is run for several scenarios including quota removal only or in combination with tariff liberalization. The analysis confirms previous findings of significant shifts in textile and apparel trade from preferential exporters to Asian and south Asian suppliers that are subject to binding MFA-quotas. However, not all MFA-exporters benefit equally from the expanding apparel trade. The United States shows significant increases in apparel imports substituting for domestic products, raising overall consumption and producing substantial welfare gains. The implications for fiber markets on the U.S. show lower demand for cotton domestic use but expand ing U.S. cotton exports due to higher world demand, particularly when both quotas and tariffs are removed. |
Resource Details (Export Citation) | GTAP Keywords | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
- Trade in textiles and wearing apparel |
Attachments |
---|
If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.
Public Access PDF version (58.2 KB) Replicated: 0 time(s) Presentation (73.1 KB) Replicated: 0 time(s) Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
Comments (0 posted) |
---|
You must log in before entering comments.
No comments have been posted. |
Last Modified: 9/15/2023 2:05:45 PM