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The Effects of the U.S. MFA on Small Exporters

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  • Dean, Judith M

Abstract

This paper tests two hypotheses regarding the impact of the U.S. Multifiber Arrangement restrictions on developing countries' exports of textiles and clothing to the United States: that the Multifibre Arrangement is a binding constraint on exporters; and that the arrangement encourages the growth of smaller exporters by restricting exports from major sellers. Pooled data on eight small Asian exporters over the period 1975-84 is used. Results strongly support the hypothesis that the Multifibre Arrangement has been a binding constraint. Although the arrangement appears to have diverted demand toward these smaller sellers, this effect is counteracted by slow growth in their own restraints. Copyright 1990 by MIT Press.

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  • Dean, Judith M, 1990. "The Effects of the U.S. MFA on Small Exporters," The Review of Economics and Statistics, MIT Press, vol. 72(1), pages 63-69, February.
    • Handle: RePEc:tpr:restat:v:72:y:1990:i:1:p:63-69
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    Cited by:

    1. Mausumi Kar, 2012. "National and Global Aspects of India’s Textiles and Apparel Industry and Trade: An Overview," South Asian Journal of Macroeconomics and Public Finance, , vol. 1(1), pages 81-133, June.
    2. Panagariya, Arvind & Shah, Shekhar & Mishra, Deepak, 2001. "Demand elasticities in international trade: are they really low?," Journal of Development Economics, Elsevier, vol. 64(2), pages 313-342, April.
    3. Yanagishima, Koji & Womack, Abner W., 1992. "Distorted U.S. Cotton Export Demand Under Textile Import Control," WAEA/ WFEA Conference Archive (1929-1995) 321378, Western Agricultural Economics Association.
    4. Conway, Patrick, 2009. "Trade liberalization in textiles: Policy effects in an import-competing industry," Journal of Policy Modeling, Elsevier, vol. 31(5), pages 664-680, September.

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