Quotas on Clothing Imports: Impact and Determinants of EU Trade Policy

Juliette Milgram ()

Review of International Economics, 2005, vol. 13, issue 3, pages 445-460

Abstract: 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%. Copyright Blackwell Publishing Ltd 2005..

Date: 2005
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