Rags in the High Rent District: The Evolution of Quota Rents in Textiles and Clothing

Tinbergen Institute Discussion Paper No. 06-007/2

32 Pages Posted: 16 Jan 2006

See all articles by Joseph F. Francois

Joseph F. Francois

University of Bern - Department of Economics; Centre for Economic Policy Research (CEPR); Vienna Institute of International Economic Studies (WIIW); University of Adelaide - School of Economics

Julia Woerz

Vienna Institute of International Economic Studies (WIIW); Tinbergen Institute Rotterdam (TIR)

Multiple version iconThere are 2 versions of this paper

Date Written: January 2006

Abstract

We develop a mixed complementarity programming (MCP) based estimating framework for non-tariff barriers (NTBs) to examine the evolution of market access conditions in the textile and clothing sectors, working with a panel of bilateral trade data on textile and clothing trade, underlying bilateral tariffs, and the country-pair coverage of quotas under the WTO's Agreement on Textiles and Clothing (ATC). Our estimating framework takes advantage of the panel nature of trade data when calculating export tax equivalents while allowing for inequality constraints on the quota premium estimates. We also introduce Gaussian quadrature for estimating goodness of fit for regression-based NTB measures based on residual fitting.

Keywords: NTB estimation, Gaussian quadrature, ATC, MFA, import quotas

JEL Classification: F13, C15

Suggested Citation

Francois, Joseph F and Woerz, Julia, Rags in the High Rent District: The Evolution of Quota Rents in Textiles and Clothing (January 2006). Tinbergen Institute Discussion Paper No. 06-007/2. Available at SSRN: https://ssrn.com/abstract=875830 or http://dx.doi.org/10.2139/ssrn.875830

Joseph F Francois (Contact Author)

University of Bern - Department of Economics ( email )

Schanzeneckstrasse 1
Bern, CH-3001
Switzerland

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Vienna Institute of International Economic Studies (WIIW) ( email )

Oppolzergasse 6
A-1010 Vienna
Austria

University of Adelaide - School of Economics ( email )

Adelaide SA, 5005
Australia
+61 8 8303 5540 (Phone)
+61 8 8223 1460 (Fax)

Julia Woerz

Vienna Institute of International Economic Studies (WIIW) ( email )

A-1010 Vienna
Austria
+43 1 5336610 24 (Phone)
+43 1 5336610 50 (Fax)

HOME PAGE: http://www.wiiw.ac.at/e/staff_woerz.html

Tinbergen Institute Rotterdam (TIR)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

HOME PAGE: http://www.tinbergen.nl/home.html

Register to save articles to
your library

Register

Paper statistics

Downloads
72
Abstract Views
946
rank
283,931
PlumX Metrics