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The Trade Restrictiveness of the Multi-fibre Arrangement

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  • Anderson, James E
  • Neary, J Peter

Abstract

This study uses the trade restrictiveness index (TRI) of Anderson and Neary (1990) to evaluate U.S. policy toward seven major exporters of textiles and apparel under the Multi-Fibre Arrangement (MFA). The period covered is 1982-88. The MFA controls the shipment of most textile and apparel items to the United States through a system of bilaterally negotiated export quotas that allow for annual growth. The arrangement itself was renegotiated in 1986, with an expansion in the number of items covered and countries included. In addition to these policy changes, changes in economic conditions during the data period altered the restrictiveness of the MFA. The TRI in principle permits all these influences to be accounted for in a consistent manner. The TRI results are contrasted with the standard trade-weighted average tariff equivalent of the quotas. The correlation of the two measures in not significantly different from zero. Copyright 1994 by Oxford University Press.

Suggested Citation

  • Anderson, James E & Neary, J Peter, 1994. "The Trade Restrictiveness of the Multi-fibre Arrangement," The World Bank Economic Review, World Bank, vol. 8(2), pages 171-189, May.
    • Handle: RePEc:oup:wbecrv:v:8:y:1994:i:2:p:171-89
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    Cited by:

    1. O'Rourke, Kevin H., 1997. "Measuring protection: a cautionary tale," Journal of Development Economics, Elsevier, vol. 53(1), pages 169-183, June.
    2. Anderson, James E., 1997. "Revenue Neutral Trade Reform with Many Households, Quotas and Tariffs," Seminar Papers 626, Stockholm University, Institute for International Economic Studies.
    3. Marco Fugazza & Alain McLaren, 2014. "Market Access, Export Performance and Survival: Evidence from Peruvian Firms," Review of International Economics, Wiley Blackwell, vol. 22(3), pages 599-624, August.
    4. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    5. Jean-Christophe Bureau & Youssef Chahed & Luca Salvatici, 2002. "La baisse de la protection douanière dans l'Uruguay Round : le cas de l'agriculture dans l'Union européenne, au Canada et aux États-Unis," Economie & Prévision, La Documentation Française, vol. 154(3), pages 107-122.
    6. Feenstra, Robert C., 1995. "Estimating the effects of trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 30, pages 1553-1595, Elsevier.
    7. Anderson, James E, 1998. "Trade Restrictiveness Benchmarks," Economic Journal, Royal Economic Society, vol. 108(449), pages 1111-1125, July.
    8. Uttam Kumar Deb, 2006. "Rules of Origin and Non-Tariff Barriers in Agricultural Trade: Perspectives from Bangladesh and Cambodia," Working Papers 1206, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..

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