IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/331317.html
   My bibliography  Save this paper

State-level Equity and the Demise of the Agreement on Textiles and Clothing

Author

Listed:
  • Andriamananjara, Soamiely
  • Balistreri, Edward J.
  • Ross, Martin T.

Abstract

According to the Agreement on Textiles and Clothing (ATC), a part of the 1995 World Trade Organization (WTO) agreements, all quantitative restrictions on textile and apparel commodities are to be removed on January 1, 2005 completing their integration into the GATT regime. Using newly computed “export-tax equivalents” of those quotas, this paper examines the welfare impacts of the 2005 liberalization at the U.S. state level. The methodology utilizes a regional model of the U.S. economy built up from individually consistent IMPLAN social accounts for each state. The model incorporates forwardlooking dynamic responses and equilibrium unemployment. The results are useful in quantifying the geographic distribution of the benefits and costs of the ATC’s expiration on the U.S. economy.

Suggested Citation

  • Andriamananjara, Soamiely & Balistreri, Edward J. & Ross, Martin T., 2004. "State-level Equity and the Demise of the Agreement on Textiles and Clothing," Conference papers 331317, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331317
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/331317/files/1835.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Avinash K. Dixit & Gene M. Grossman, 1982. "Trade and Protection with Multistage Production," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 49(4), pages 583-594.
    2. José Anson & Olivier Cadot & Antoni Estevadeordal & Jaime de Melo & Akiko Suwa‐Eisenmann & Bolormaa Tumurchudur, 2005. "Rules of Origin in North–South Preferential Trading Arrangements with an Application to NAFTA," Review of International Economics, Wiley Blackwell, vol. 13(3), pages 501-517, August.
    3. Jiandong Ju & Kala Krishna, 2005. "Firm behaviour and market access in a Free Trade Area with rules of origin," Canadian Journal of Economics, Canadian Economics Association, vol. 38(1), pages 290-308, February.
    4. Diao, Xinshen & Somwaru, Agapi, 2001. "Impact of MFA Phase-Out on the World Economy -- An Intertemporal, Global General Equilibrium Analysis," Conference papers 330934, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Krishna, Kala, 1989. "Trade restrictions as facilitating practices," Journal of International Economics, Elsevier, vol. 26(3-4), pages 251-270, May.
    6. Balistreri, Edward J., 2002. "Operationalizing equilibrium unemployment: A general equilibrium external economies approach," Journal of Economic Dynamics and Control, Elsevier, vol. 26(3), pages 347-374, March.
    7. P. J. Lloyd, 1993. "A Tariff Substitute for Rules of Origin in Free Trade Areas," The World Economy, Wiley Blackwell, vol. 16(6), pages 699-712, November.
    8. Lau, Morten I. & Pahlke, Andreas & Rutherford, Thomas F., 2002. "Approximating infinite-horizon models in a complementarity format: A primer in dynamic general equilibrium analysis," Journal of Economic Dynamics and Control, Elsevier, vol. 26(4), pages 577-609, April.
    9. Richard Avisse & Michel Fouquin, 2001. "Textiles and Clothing: the End of Discriminatory Protection," La Lettre du CEPII, CEPII research center, issue 198.
    10. Unknown, 2001. "General Discussion," Proceedings of the 6th Agricultural and Food Policy Systems Information Workshop, 2000: Trade Liberalization Under NAFTA: Report Card on Agriculture 16839, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    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. Hallren, Ross, 2020. "Evaluating a Simple Method for Estimating Sub-National Trade Flows," Conference papers 333171, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    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. Cadot, Olivier & Estevadeordal, Antoni & Suwa-Eisenmann, Akiko, 2004. "Rules of Origin as Export Subsidies," Conference papers 331264, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Olivier Cadot & Jaime de Melo, 2015. "Why OECD Countries Should Reform Rules of Origin," World Scientific Book Chapters, in: Developing Countries in the World Economy, chapter 16, pages 381-409, World Scientific Publishing Co. Pte. Ltd..
    3. Tsigas, Marinos & Ehui, Simeon, 2006. "The Role of Agriculture in Nigeria’s Economic Growth: A General Equilibrium Analysis," Conference papers 331551, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Patricia Augier & Michael Gasiorek & Charles Lai-Tong, 2007. "Multilateralising Regionalism: Relaxing the Rules of Origin Or Can Those Pecs Be Flexed?," CARIS Working Papers 03, Centre for the Analysis of Regional Integration at Sussex, University of Sussex.
    5. Celik, Levent & Karabay, Bilgehan & McLaren, John, 2020. "Fast-track authority: A hold-up interpretation," Journal of International Economics, Elsevier, vol. 127(C).
    6. Rod Falvey & Geoff Reed, 1998. "Economic effects of rules of origin," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(2), pages 209-229, June.
    7. Patricia Augier & Michael Gasiorek & Charles Lai Tong, 2005. "The impact of rules of origin on trade flows [‘Rules of origin and the EU-Med partnership: the case of textiles’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 20(43), pages 568-624.
    8. Chung, Wanyu & Perroni, Carlo, 2020. "Rules of Origin and Market Power," CAGE Online Working Paper Series 504, Competitive Advantage in the Global Economy (CAGE).
    9. Cadot, Olivier & Melo, Jaime de, 2007. "Rules of Origin for Preferential Trading Arrangements: Implications for the ASEAN Free Trade Area of EU and US Experience," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 22, pages 256-287.
    10. Candau, Fabien & Jean, Sebastien, 2005. "What Are EU Trade Preferences Worth for Sub-Saharan Africa and Other Developing Countries?," Working Papers 18863, TRADEAG - Agricultural Trade Agreements.
    11. Mizuno, Tomomichi & Takauchi, Kazuhiro, 2013. "Rules of origin and uncertain cost of compliance," MPRA Paper 44431, University Library of Munich, Germany.
    12. Irene Brambilla & Amit K. Khandelwal & Peter K. Schott, 2010. "China's Experience under the Multi-Fiber Arrangement (MFA) and the Agreement on Textiles and Clothing (ATC)," NBER Chapters, in: China's Growing Role in World Trade, pages 345-387, National Bureau of Economic Research, Inc.
    13. Nabil Annabi & H. Khondker Bazlul & Selim Raihan & John Cockburn & Bernard Decaluwe, 2005. "Implications of WTO Agreements and Domestic Trade Policy Reforms for Poverty in Bangladesh: Short vs. Long Run," Working Papers MPIA 2005-02, PEP-MPIA.
    14. Kala Krishna, 2005. "Understanding Rules of Origin," NBER Working Papers 11150, National Bureau of Economic Research, Inc.
    15. Peter Walkenhorst, 2004. "Liberalising Trade in Textiles and Clothing: A Survey of Quantitative Studies," International Trade 0401007, University Library of Munich, Germany.
    16. Sung Hee Lee & Kun Soo Park & Yong Won Seo, 2016. "Multinational Firm’s Production Decisions under Overlapping Free Trade Agreements: Rule of Origin Requirements and Environmental Regulation," Sustainability, MDPI, vol. 9(1), pages 1-16, December.
    17. Gebreeyesus M., 2013. "The End of the Multifibre Arrangement (MFA) and the Heterogeneous Performance of Quota-Constrained Countries," MERIT Working Papers 2013-035, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    18. Jean-Raphael Chaponniere & Jean-Pierre Cling & Mohamed Ali Marouani, 2004. "Les conséquences pour les pays en développement de la suppression des quotas dans le textile habillement : le cas de la Tunisie," Working Papers DT/2004/16, DIAL (Développement, Institutions et Mondialisation), revised Dec 2004.
    19. Naoto Jinji & Yoshihiro Mizoguchi, 2016. "Optimal Rules of Origin with Asymmetric Compliance Costs under International Duopoly," Journal of Industry, Competition and Trade, Springer, vol. 16(1), pages 1-24, March.
    20. Chang, Yang-Ming & Xiao, Renfeng, 2015. "Preferential trade agreements between asymmetric countries: Free trade areas (with rules of origin) vs. customs unions," Japan and the World Economy, Elsevier, vol. 33(C), pages 28-43.

    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:ags:pugtwp:331317. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    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.