Working Paper: NBER ID: w13346
Authors: Irene Brambilla; Amit Khandelwal; Peter Schott
Abstract: This paper analyzes China's experience under U.S. apparel and textile quotas. It makes use of a unique new database that tracks U.S. trading partners' performance under the quota regimes established by the global Multifiber Arrangement (1974 to 1995) and subsequent Agreement on Textiles and Clothing (1995 to 2005). We find that China was relatively more constrained under these regimes than other countries and that, as quotas were lifted, China's exports grew disproportionately. When the ATC finally ended in 2005, China's exports surged while those from nearly all other regions fell.
Keywords: China; MFA; ATC; textiles; clothing; trade policy
JEL Codes: F1; F13; F15
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Binding quotas (D45) | Constrained export growth (F14) |
| Quota removal (Y60) | Surge in China's exports (F10) |
| Quota binding (D45) | Export performance (E23) |
| Quota relaxations (C21) | Export growth rates (O47) |
| Quota system evolution (B15) | Protection of US manufacturers (F13) |
| Quota system evolution (B15) | Access for smaller developing countries (O10) |
| Increase in China's market share (F62) | Decrease in domestic manufacturers' share (F69) |
| Increase in China's market share (F62) | Decrease in other trading partners' share (F69) |