 EFFECTS OF PHASING OUT OF MFA QUOTAS ON INDIAN GARMENT EXPORTS, 1992-2003Regional and Sectoral Economic Studies, 2008, vol. 8, issue 1, 71-88 Abstract: We examine the impact of phasing out of MFA quotas on Indian garment exports as an example of competitive labour-intensive sector in an emerging market economy that has been recently facing removal of export restraints. We employ three different methodologies using a monthly data from 1992:11 to 2003:9: Perron’s (1989) methodology of testing for unit roots in the presence of trend break, split-sample test of trend-break hypothesis and intervention analysis. The major conclusion is that the WTO’s decision to phase out the MFA quotas has had a positive impact on the Indian Garment Exports. Perron’s trend break hypothesis does support this as a cause for change in intercept, while the split-sample analysis shows that there has been a structural transformation in terms of introduction of trend-stationarity in place of difference–stationarity. Intervention analysis shows that this effect has been positive, significant and long-lasting. This analysis implies that Indian apparel sector may benefit from the phasing out of MFA quotas. Keywords: Country and Industry Studies of Trade; Economic Integration; Time Series Models (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eaa:eerese:v:8:y2008:i:8_4 Ordering information: This journal article can be ordered from Access Statistics for this article More articles in Regional and Sectoral Economic Studies from Euro-American Association of Economic Development |
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