Implications for South Asian Countries for Abolishing the Multifibre Arrangement

The authors provide a simple introduction to the economics of the Multifibre Arrangement (MFA) and use available empirical evidence to examine its impact on exports of garments and textiles, focusing on India. Their review of the basic economics of...

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Main Authors:	Kathuria, Sanjay, Martin, Will, Bhardwaj, Anjali
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	MULTIFIBER ARRANGEMENTS TEXTILE FIBRES CLOTHING INDUSTRY EXPORT MARKETS TRADE QUOTAS RENT-SEEKING EMPLOYMENT GENERATION EXPORT TAXES EXPORT POLICY COMPETITIVENESS TRADE LIBERALIZATION ALLOCATIVE EFFICIENCY APPAREL APPAREL EXPORT APPAREL EXPORTS APPAREL INDUSTRY AVERAGE PRICES BENCHMARK COMPARATIVE ADVANTAGE CONCESSIONS CONSUMERS DEMAND CURVE DEMAND CURVES DEVALUATION DEVELOPED COUNTRIES DEVELOPMENT AGENCIES DOMESTIC DISTORTIONS DOMESTIC INDUSTRY DOMESTIC MARKET DOMESTIC PRODUCTION DUMPING ECONOMIC DEVELOPMENT ECONOMIC IMPLICATIONS ELASTICITIES ELASTICITY OF DEMAND EMPIRICAL EVIDENCE EMPLOYMENT EQUILIBRIUM EXCESS DEMAND EXPORT BIAS EXPORT GROWTH EXPORT MARKET EXPORT ORIENTATION EXPORT PERFORMANCE EXPORT PRICE EXPORT PRICES EXPORT SHARE EXPORT SUPPLY EXPORT TAX EQUIVALENTS EXPORTERS EXPORTS FACTOR ENDOWMENTS FACTOR PRICES FIXED COSTS FOREIGN FIRMS GENERAL EQUILIBRIUM MODELING IMPACT OF TRADE IMPORT DUTIES IMPORT DUTY IMPORT RESTRICTIONS IMPORTS IMPORTS OF TEXTILES INTERNATIONAL PRICES INTERNATIONAL TRADE LABOR FORCE LABOR PRODUCTIVITY LEGISLATION MARKET ACCESS MARKET EQUILIBRIUM MARKET POWER OUTPUT POLICY ENVIRONMENT POTENTIAL OUTPUT PRODUCERS PRODUCTION PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY INCREASES QUOTA LEVELS QUOTA RENTS QUOTAS SALES SUPPLIERS SUPPLY CURVE TARIFF BARRIERS TARIFF EQUIVALENTS TAXATION TERMS OF TRADE TERMS OF TRADE EFFECTS THIRD MARKETS TRADE BARRIERS TRADE DIVERSION TRADE LOSSES TRADE REGIME TRANSACTION COSTS URUGUAY ROUND VALUE OF EXPORTS VALUE OF IMPORTS WELFARE GAINS WELFARE IMPACTS WTO ZERO ELASTICITY MULTIFIBER ARRANGEMENT ALLOCATIVE EFFICIENCY TRADE LIBERALIZATION
Online Access:	http://documents.worldbank.org/curated/en/2001/11/1643368/implications-south-asian-countries-abolishing-multifibre-arrangement http://hdl.handle.net/10986/19431

id	okr-10986-19431
recordtype	oai_dc
spelling	okr-10986-194312021-04-23T14:03:43Z Implications for South Asian Countries for Abolishing the Multifibre Arrangement Kathuria, Sanjay Martin, Will Bhardwaj, Anjali MULTIFIBER ARRANGEMENTS TEXTILE FIBRES CLOTHING INDUSTRY EXPORT MARKETS TRADE QUOTAS RENT-SEEKING EMPLOYMENT GENERATION EXPORT TAXES EXPORT POLICY COMPETITIVENESS TRADE LIBERALIZATION ALLOCATIVE EFFICIENCY APPAREL APPAREL EXPORT APPAREL EXPORTS APPAREL INDUSTRY AVERAGE PRICES BENCHMARK COMPARATIVE ADVANTAGE COMPETITIVENESS CONCESSIONS CONSUMERS DEMAND CURVE DEMAND CURVES DEVALUATION DEVELOPED COUNTRIES DEVELOPMENT AGENCIES DOMESTIC DISTORTIONS DOMESTIC INDUSTRY DOMESTIC MARKET DOMESTIC PRODUCTION DUMPING ECONOMIC DEVELOPMENT ECONOMIC IMPLICATIONS ELASTICITIES ELASTICITY OF DEMAND EMPIRICAL EVIDENCE EMPLOYMENT EQUILIBRIUM EXCESS DEMAND EXPORT BIAS EXPORT GROWTH EXPORT MARKET EXPORT ORIENTATION EXPORT PERFORMANCE EXPORT PRICE EXPORT PRICES EXPORT SHARE EXPORT SUPPLY EXPORT TAX EQUIVALENTS EXPORTERS EXPORTS FACTOR ENDOWMENTS FACTOR PRICES FIXED COSTS FOREIGN FIRMS GENERAL EQUILIBRIUM MODELING IMPACT OF TRADE IMPORT DUTIES IMPORT DUTY IMPORT RESTRICTIONS IMPORTS IMPORTS OF TEXTILES INTERNATIONAL PRICES INTERNATIONAL TRADE LABOR FORCE LABOR PRODUCTIVITY LEGISLATION MARKET ACCESS MARKET EQUILIBRIUM MARKET POWER OUTPUT POLICY ENVIRONMENT POTENTIAL OUTPUT PRODUCERS PRODUCTION PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY INCREASES QUOTA LEVELS QUOTA RENTS QUOTAS SALES SUPPLIERS SUPPLY CURVE TARIFF BARRIERS TARIFF EQUIVALENTS TAXATION TERMS OF TRADE TERMS OF TRADE EFFECTS THIRD MARKETS TRADE BARRIERS TRADE DIVERSION TRADE LOSSES TRADE REGIME TRANSACTION COSTS URUGUAY ROUND VALUE OF EXPORTS VALUE OF IMPORTS WELFARE GAINS WELFARE IMPACTS WTO ZERO ELASTICITY MULTIFIBER ARRANGEMENT ALLOCATIVE EFFICIENCY TRADE LIBERALIZATION The authors provide a simple introduction to the economics of the Multifibre Arrangement (MFA) and use available empirical evidence to examine its impact on exports of garments and textiles, focusing on India. Their review of the basic economics of the MFA shows the discriminatory character of the Arrangement. While exporting countries can gain from quota rents, much of this gain is likely to be offset by losses in exports to unrestricted markets, through waste resulting from domestic rent-seeking behavior, or shared with industrial country importers. Moreover, the restrictions curtail the ability of countries to generate sorely needed employment in the labor-intensive garment and textile sectors. Recent estimates for India of the export tax equivalents of the quotas suggest that they increased in 1999, after a couple of years around lower levels. The authors also examine the domestic policy distortions affecting the industry in India. While the abolition of quotas on international trade in textiles in 2005 will create opportunities for developing countries, it will also expose them to additional competition from other, formerly restrained exporters. The outcome for any country will depend on its policy response. Countries that use the opportunity to streamline their policies and improve their competitiveness are likely to increase their gains from quota abolition. Modeling results suggest that South Asia as a whole will gain from quota abolition, although different countries may experience different results. Unambiguously, however, the gains from domestic reform will increase after the abolition of the quota arrangement. 2014-08-19T17:19:42Z 2014-08-19T17:19:42Z 2001-11 http://documents.worldbank.org/curated/en/2001/11/1643368/implications-south-asian-countries-abolishing-multifibre-arrangement http://hdl.handle.net/10986/19431 English en_US Policy Research Working Paper;No. 2721 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia India
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	MULTIFIBER ARRANGEMENTS TEXTILE FIBRES CLOTHING INDUSTRY EXPORT MARKETS TRADE QUOTAS RENT-SEEKING EMPLOYMENT GENERATION EXPORT TAXES EXPORT POLICY COMPETITIVENESS TRADE LIBERALIZATION ALLOCATIVE EFFICIENCY APPAREL APPAREL EXPORT APPAREL EXPORTS APPAREL INDUSTRY AVERAGE PRICES BENCHMARK COMPARATIVE ADVANTAGE COMPETITIVENESS CONCESSIONS CONSUMERS DEMAND CURVE DEMAND CURVES DEVALUATION DEVELOPED COUNTRIES DEVELOPMENT AGENCIES DOMESTIC DISTORTIONS DOMESTIC INDUSTRY DOMESTIC MARKET DOMESTIC PRODUCTION DUMPING ECONOMIC DEVELOPMENT ECONOMIC IMPLICATIONS ELASTICITIES ELASTICITY OF DEMAND EMPIRICAL EVIDENCE EMPLOYMENT EQUILIBRIUM EXCESS DEMAND EXPORT BIAS EXPORT GROWTH EXPORT MARKET EXPORT ORIENTATION EXPORT PERFORMANCE EXPORT PRICE EXPORT PRICES EXPORT SHARE EXPORT SUPPLY EXPORT TAX EQUIVALENTS EXPORTERS EXPORTS FACTOR ENDOWMENTS FACTOR PRICES FIXED COSTS FOREIGN FIRMS GENERAL EQUILIBRIUM MODELING IMPACT OF TRADE IMPORT DUTIES IMPORT DUTY IMPORT RESTRICTIONS IMPORTS IMPORTS OF TEXTILES INTERNATIONAL PRICES INTERNATIONAL TRADE LABOR FORCE LABOR PRODUCTIVITY LEGISLATION MARKET ACCESS MARKET EQUILIBRIUM MARKET POWER OUTPUT POLICY ENVIRONMENT POTENTIAL OUTPUT PRODUCERS PRODUCTION PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY INCREASES QUOTA LEVELS QUOTA RENTS QUOTAS SALES SUPPLIERS SUPPLY CURVE TARIFF BARRIERS TARIFF EQUIVALENTS TAXATION TERMS OF TRADE TERMS OF TRADE EFFECTS THIRD MARKETS TRADE BARRIERS TRADE DIVERSION TRADE LOSSES TRADE REGIME TRANSACTION COSTS URUGUAY ROUND VALUE OF EXPORTS VALUE OF IMPORTS WELFARE GAINS WELFARE IMPACTS WTO ZERO ELASTICITY MULTIFIBER ARRANGEMENT ALLOCATIVE EFFICIENCY TRADE LIBERALIZATION
spellingShingle	MULTIFIBER ARRANGEMENTS TEXTILE FIBRES CLOTHING INDUSTRY EXPORT MARKETS TRADE QUOTAS RENT-SEEKING EMPLOYMENT GENERATION EXPORT TAXES EXPORT POLICY COMPETITIVENESS TRADE LIBERALIZATION ALLOCATIVE EFFICIENCY APPAREL APPAREL EXPORT APPAREL EXPORTS APPAREL INDUSTRY AVERAGE PRICES BENCHMARK COMPARATIVE ADVANTAGE COMPETITIVENESS CONCESSIONS CONSUMERS DEMAND CURVE DEMAND CURVES DEVALUATION DEVELOPED COUNTRIES DEVELOPMENT AGENCIES DOMESTIC DISTORTIONS DOMESTIC INDUSTRY DOMESTIC MARKET DOMESTIC PRODUCTION DUMPING ECONOMIC DEVELOPMENT ECONOMIC IMPLICATIONS ELASTICITIES ELASTICITY OF DEMAND EMPIRICAL EVIDENCE EMPLOYMENT EQUILIBRIUM EXCESS DEMAND EXPORT BIAS EXPORT GROWTH EXPORT MARKET EXPORT ORIENTATION EXPORT PERFORMANCE EXPORT PRICE EXPORT PRICES EXPORT SHARE EXPORT SUPPLY EXPORT TAX EQUIVALENTS EXPORTERS EXPORTS FACTOR ENDOWMENTS FACTOR PRICES FIXED COSTS FOREIGN FIRMS GENERAL EQUILIBRIUM MODELING IMPACT OF TRADE IMPORT DUTIES IMPORT DUTY IMPORT RESTRICTIONS IMPORTS IMPORTS OF TEXTILES INTERNATIONAL PRICES INTERNATIONAL TRADE LABOR FORCE LABOR PRODUCTIVITY LEGISLATION MARKET ACCESS MARKET EQUILIBRIUM MARKET POWER OUTPUT POLICY ENVIRONMENT POTENTIAL OUTPUT PRODUCERS PRODUCTION PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY INCREASES QUOTA LEVELS QUOTA RENTS QUOTAS SALES SUPPLIERS SUPPLY CURVE TARIFF BARRIERS TARIFF EQUIVALENTS TAXATION TERMS OF TRADE TERMS OF TRADE EFFECTS THIRD MARKETS TRADE BARRIERS TRADE DIVERSION TRADE LOSSES TRADE REGIME TRANSACTION COSTS URUGUAY ROUND VALUE OF EXPORTS VALUE OF IMPORTS WELFARE GAINS WELFARE IMPACTS WTO ZERO ELASTICITY MULTIFIBER ARRANGEMENT ALLOCATIVE EFFICIENCY TRADE LIBERALIZATION Kathuria, Sanjay Martin, Will Bhardwaj, Anjali Implications for South Asian Countries for Abolishing the Multifibre Arrangement
geographic_facet	South Asia India
relation	Policy Research Working Paper;No. 2721
description	The authors provide a simple introduction to the economics of the Multifibre Arrangement (MFA) and use available empirical evidence to examine its impact on exports of garments and textiles, focusing on India. Their review of the basic economics of the MFA shows the discriminatory character of the Arrangement. While exporting countries can gain from quota rents, much of this gain is likely to be offset by losses in exports to unrestricted markets, through waste resulting from domestic rent-seeking behavior, or shared with industrial country importers. Moreover, the restrictions curtail the ability of countries to generate sorely needed employment in the labor-intensive garment and textile sectors. Recent estimates for India of the export tax equivalents of the quotas suggest that they increased in 1999, after a couple of years around lower levels. The authors also examine the domestic policy distortions affecting the industry in India. While the abolition of quotas on international trade in textiles in 2005 will create opportunities for developing countries, it will also expose them to additional competition from other, formerly restrained exporters. The outcome for any country will depend on its policy response. Countries that use the opportunity to streamline their policies and improve their competitiveness are likely to increase their gains from quota abolition. Modeling results suggest that South Asia as a whole will gain from quota abolition, although different countries may experience different results. Unambiguously, however, the gains from domestic reform will increase after the abolition of the quota arrangement.
format	Publications & Research :: Policy Research Working Paper
author	Kathuria, Sanjay Martin, Will Bhardwaj, Anjali
author_facet	Kathuria, Sanjay Martin, Will Bhardwaj, Anjali
author_sort	Kathuria, Sanjay
title	Implications for South Asian Countries for Abolishing the Multifibre Arrangement
title_short	Implications for South Asian Countries for Abolishing the Multifibre Arrangement
title_full	Implications for South Asian Countries for Abolishing the Multifibre Arrangement
title_fullStr	Implications for South Asian Countries for Abolishing the Multifibre Arrangement
title_full_unstemmed	Implications for South Asian Countries for Abolishing the Multifibre Arrangement
title_sort	implications for south asian countries for abolishing the multifibre arrangement
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2001/11/1643368/implications-south-asian-countries-abolishing-multifibre-arrangement http://hdl.handle.net/10986/19431
_version_	1764439846501220352

Implications for South Asian Countries for Abolishing the Multifibre Arrangement

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