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GTAP Resource #1571

"Dealing With Diversity: Analyzing The Consequences of Textile Quota Abolition"
by Martin, Will, Vlad Manole and Dominique van der Mensbrugghe

In this paper, we provide a preliminary analysis of the consequences for Pakistan of abolishing the system of quotas installed under the Multi-Fibre Arrangement (MFA) and currently being dismantled under the Agreement on Textiles and Clothing (ATC). We develop a framework that takes into account the major sources of gains and losses from quota abolition. As a basis for the analysis, we developed estimates of the export tax equivalents(ETEs) of quotas that drawn on new data on quota prices for exports from Bangladesh; China; Hong Kong, China; Pakistan; India; Indonesia and Taiwan, China in the US and EU markets. Combining this information with detailed data on the unit values of imports at the quota category level we estimate the export taxes that would have the same restrictive effect as the quotas. Next, we evaluated the broad consequences of quota abolition in a global general equilibrium context, taking into account the second-round impacts associated with expanding exports to the currently restricted markets, the efficiency and employment gains.

Resource Details (Export Citation) GTAP Keywords
Category: 2004 Conference Paper
Status: Published
By/In: Presented at the 7th Annual Conference on Global Economic Analysis, Washington DC, USA
Date: 2004
Created: Martin, W. (5/11/2004)
Updated: Ahmed, S. (9/13/2004)
Visits: 3,737
No keywords have been specified.

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