IDEAS home Printed from https://ideas.repec.org/a/bla/worlde/v18y1995i1p113-135.html
   My bibliography  Save this article

A Primer on the MFA Maze

Author

Listed:
  • Riccardo Faini
  • Jaime Melo
  • Wendy Takacs

Abstract

The paper identifies the potential sources of allocative inefficiency generated by the Multi-Fiber Agreements (MFA) and examines the evidence for such inefficiencies. Five sources of inefficiency are identified relating to inefficient allocations across countries, across consumers, and among firms within constrained countries. Evidence is first provided from trends in import shares for aggregate categories of textiles and clothing before and during the MFA. Second, evidence is provided from a detailed examination of quota utilization rates and price differentials among EC importing countries.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Riccardo Faini & Jaime Melo & Wendy Takacs, 1995. "A Primer on the MFA Maze," The World Economy, Wiley Blackwell, vol. 18(1), pages 113-135, January.
    • Handle: RePEc:bla:worlde:v:18:y:1995:i:1:p:113-135
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/j.1467-9701.1995.tb00204.x
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Erzan, Refik & Goto, Junichi & Holmes, Paula, 1989. "Effects of the multifibre arrangement on developing countries'trade : an empirical investigation," Policy Research Working Paper Series 297, The World Bank.
    2. Krishna, Kala & Erzan, Refik & Tan, Ling Hui, 1994. "Rent Sharing in the Multi-fibre Arrangement: Theory and Evidence from U.S. Apparel Imports from Hong Kong," Review of International Economics, Wiley Blackwell, vol. 2(1), pages 62-73, February.
    3. Faini, Riccardo & Heimler, Alberto, 1991. "The Quality of Production of Textiles and Clothing and the Completion of the Internal Market," CEPR Discussion Papers 508, C.E.P.R. Discussion Papers.
    4. Trela, Irene & Whalley, John, 1990. "Global Effects of Developed Country Trade Restrictions on Textiles and Apparel," Economic Journal, Royal Economic Society, vol. 100(403), pages 1190-1205, December.
    5. Bark, Taeho & de Melo, Jaime, 1988. "Export Quota Allocations, Export Earnings, and Market Diversification," The World Bank Economic Review, World Bank, vol. 2(3), pages 341-348, September.
    6. Faini, Riccardo & de Melo, Jaime & Takacs, Wendy, 1992. "The effects of EC-92 on the multi-fibre arrangement," European Economic Review, Elsevier, vol. 36(2-3), pages 527-538, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad Sofjan, 2017. "The Effect of Liberalization on Export-import in Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 672-676.
    2. Afia Malik, 2000. "Demand for Textile and Clothing Exports of Pakistan," PIDE Research Report 2000:4, Pakistan Institute of Development Economics.
    3. Kala Krishna & Ling Hui Tan, "undated". "Transferable Licenses vs. Nontransferable Licences: What is the Difference?," EPRU Working Paper Series 96-02, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    4. Cunha, Luis Campos e & Santos, Vasco, 1996. "Sleeping quotas, pre-emptive quota bidding and monopoly power," Journal of International Economics, Elsevier, vol. 40(1-2), pages 127-148, February.
    5. Janda, Karel, 2009. "Signaling the Strength of a Market Entrant," MPRA Paper 17007, University Library of Munich, Germany.
    6. Ilse Scheerlinck & Luc Hens & Rosette S’Jegers, 1996. "Free trade or protection? belgian textile and clothing firms’ trade preferences," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 132(4), pages 723-739, December.
    7. Shumei Gao & Jihe Song, 2004. "Quota Use under VERs: A theoretical framework and some evidence on MFA quota use," Working Papers E03, Department of Economics, School of Management and Languages, Heriot Watt University.
    8. Krishna, Kala & Ling Hui Tan, 1992. "Rent-sharing in the multi-fibre arrangement : evidence from U.S. - Hong Kong trade in apparel," Policy Research Working Paper Series 1003, The World Bank.
    9. Spinanger, Dean, 1994. "Profiting from protection in an open economy: Hong Kong's supply response to EU's MFA restrictions," Kiel Working Papers 653, Kiel Institute for the World Economy (IfW Kiel).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kenneth A. Reinert, 1993. "Textile and Apparel Protection in the United States: A General Equilibrium Analysis," The World Economy, Wiley Blackwell, vol. 16(3), pages 359-376, May.
    2. Krishna, Kala & Martin, Will & Tan, Ling Hui, 1997. "Imputing license prices: limitations of a cost-based approach," Journal of Development Economics, Elsevier, vol. 52(2), pages 355-374, April.
    3. Kenneth Hanson & Kenneth Reinert, 1997. "The Distributional Effects of U.S. Textile and Apparel Protection," International Economic Journal, Taylor & Francis Journals, vol. 11(3), pages 1-12.
    4. Robert C. Feenstra, 1992. "How Costly Is Protectionism?," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 159-178, Summer.
    5. Safadi, Raed & Laird, Sam, 1996. "The Uruguay Round agreements: Impact on developing countries," World Development, Elsevier, vol. 24(7), pages 1223-1242, July.
    6. Walmsley, Terrie L. & Hertel, Thomas W. & Ianchovichina, Elena, 2001. "Assessing the Impact of China’s WTO Accession on Foreign Ownership," Conference papers 330941, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Erzan, Refik & Holmes, Paula, 1990. "An evaluation of the main elements in the leading proposals to phase out the Multi-Fibre Arrangement," Policy Research Working Paper Series 483, The World Bank.
    8. Michael J. Ferrantino, 2006. "Quantifying the Trade and Economic Effects of Non-Tariff Measures," OECD Trade Policy Papers 28, OECD Publishing.
    9. Jun Lee & Miguel I. Gómez, 2013. "Impacts of the End of the Coffee Export Quota System on International-to-Retail Price Transmission," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(2), pages 343-362, June.
    10. Shui, Shangnan & Wohlgenant, Michael K. & Beghin, John C., 1993. "Policy Implications of Textile Trade Management and the U.S. Cotton Industry," Agricultural and Resource Economics Review, Cambridge University Press, vol. 22(1), pages 37-47, April.
    11. Rehbein, Kathleen & Starks, Laura T., 1995. "Changes in U.S. trade policies: the wealth effects on Japanese steel firms," Japan and the World Economy, Elsevier, vol. 7(3), pages 309-327, September.
    12. Inmaculada Martínez-Zarzoso & Celestino Burguet, 2000. "Measurement of export prices and changes in product quality," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 6(4), pages 619-632, November.
    13. Hervé Guyomard & Catherine Laroche & Chantal Le Mouel, 1998. "Marché contingenté à l'importation et marché des droits à importer en concurrence imparfaite [Le cas de la banane dans l'Union européenne ]," Économie rurale, Programme National Persée, vol. 243(1), pages 47-55.
    14. Marcelo Olarreaga & Çaglar Özden, 2005. "AGOA and Apparel: Who Captures the Tariff Rent in the Presence of Preferential Market Access?," The World Economy, Wiley Blackwell, vol. 28(1), pages 63-77, January.
    15. Elena Ianchovichina & Maros Ivanic, 2016. "Economic Effects of the Syrian War and the Spread of the Islamic State on the Levant," The World Economy, Wiley Blackwell, vol. 39(10), pages 1584-1627, October.
    16. Afia Malik, 2000. "Demand for Textile and Clothing Exports of Pakistan," PIDE Research Report 2000:4, Pakistan Institute of Development Economics.
    17. repec:phd:pjdevt:jpd_1995_vol__xxii_no__1-e is not listed on IDEAS
    18. Kar, Saibal & Kar, Mausumi, 2010. "The multi fibre arrangement and South Asia," MPRA Paper 103801, University Library of Munich, Germany.
    19. de Melo, Jaime & Winters, L Alan, 1990. "Voluntary Export Restraints and Resource Allocation in Exporting Countries," The World Bank Economic Review, World Bank, vol. 4(2), pages 209-233, May.
    20. Ramos Mabugu & Margaret Chitiga, 2009. "Liberalising Trade In South Africa: A Survey Of Computable General Equilibrium Studies," South African Journal of Economics, Economic Society of South Africa, vol. 77(3), pages 445-464, September.
    21. Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009. "Estimating Trade Restrictiveness Indices," Economic Journal, Royal Economic Society, vol. 119(534), pages 172-199, January.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:worlde:v:18:y:1995:i:1:p:113-135. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.