Premium
Quotas on Clothing Imports: Impact and Determinants of EU Trade Policy
Author(s) -
Baleix Juliette Milgram
Publication year - 2005
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/j.1467-9396.2005.00516.x
Subject(s) - endogeneity , clothing , economics , tariff , gravity equation , accession , international economics , instrumental variable , rules of origin , trade barrier , estimation , international trade , european union , bilateral trade , econometrics , management , archaeology , political science , law , china , history
We assess the impact of the phasing‐out of quotas on European clothing imports within the framework of the phase‐out of the Multi‐Fiber Agreement and the accession of the CEEC. We use 1996 data on trade barriers for 20 categories of clothing products and 22 exporters. The estimation of a standard gravity equation concludes that tariffs have a large and negative impact as expected but seldom corroborated in the literature. The negative impact of non‐tariff barriers also appears clearly after controlling for an endogeneity bias by the instrumental variables method. The phasing‐out of quotas should increase EU imports by 20%.