Multi Fibre Arrangement and Textile Industry in South Asia

SOUTH-SOUTH GLOBALIZATION CHALLENGES AND OPPORTUNITIES FOR DEVELOPMENT, Chapter 7, S. Mansoob Murshed, Pedro Goulart, Leandro Serino, eds., Routledge, 2011

60 Pages Posted: 27 Feb 2012

See all articles by Mausumi Kar

Mausumi Kar

Women's Christian College, Kolkata

Saibal Kar

Centre for Studies in Social Sciences, Calcutta; Institute of Labor Economics (IZA)

Date Written: May 10, 2010

Abstract

Withdrawal of Multi Fibre Arrangement affected the textile and clothing industries worldwide. This chapter studies impact of MFA phase-out on export growth for seven major Asian exporters between 1995 and 2005. We use constant market share analysis to reflect on the conditions of clothing and textile industries in these countries. We observe that the removal of quota led to significant changes in country-wise export shares – countries with more efficient production techniques captured larger shares in the post-MFA phase. It supports a recent theoretical proposition that removal of quota in this case would lead to concentration of textile production in few larger countries in Asia at the expense of many smaller ones that previously enjoyed considerable export shares.

Keywords: Multi Fibre Arrangement, WTO, Quota, Exports, Asia

JEL Classification: F13, F14, F17

Suggested Citation

Kar, Mausumi and Kar, Saibal, Multi Fibre Arrangement and Textile Industry in South Asia (May 10, 2010). SOUTH-SOUTH GLOBALIZATION CHALLENGES AND OPPORTUNITIES FOR DEVELOPMENT, Chapter 7, S. Mansoob Murshed, Pedro Goulart, Leandro Serino, eds., Routledge, 2011. Available at SSRN: https://ssrn.com/abstract=2011778

Mausumi Kar

Women's Christian College, Kolkata ( email )

6 Greek Church Row
Kolkata, 700 026
India

Saibal Kar (Contact Author)

Centre for Studies in Social Sciences, Calcutta ( email )

R-1, Baishnabghata Patuli Township
Calcutta, 700 094
India
91-33-2462 7252 (Phone)
91-33-2462 6183 (Fax)

HOME PAGE: http://www.cssscal.org

Institute of Labor Economics (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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