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
Date Written: May 10, 2010
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: Suggested Citation