 The Multifibre Arrangement and Its Effects on Developing CountriesJunichi Goto The World Bank Research Observer, 1989, vol. 4, issue 2, 203-27 Abstract: The MFA provides for bilateral quotas against textile and clothing exports from developing countries. Thus, although it is administered under the auspices of GATT, the MFA derogates two GATT principles: nondiscrimination and the avoidance of quantitative restrictions. The impact of the MFA on developing countries is examined in the article. Four important short-term effects of the MFA on exporting developing countries are (1) the foregoing of exports, (2) the transfer of quota rents, (3) the shift to unrestricted exporters, and (4) the upgrading of products. In the long term the MFA discourages newcomers from becoming successful exporters of textile and clothing products. Although it also encourages foreign investment in unrestricted developing countries, in general the MFA is harmful to current and potential exporters of textiles and clothing in developing countries, and it benefits domestic producers of textiles and clothing in the importing industrial countries. Copyright 1989 by Oxford University Press. Date: 1989 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oup:wbrobs:v:4:y:1989:i:2:p:203-27 Ordering information: This journal article can be ordered from Access Statistics for this article The World Bank Research Observer is currently edited by Peter Lanjouw More articles in The World Bank Research Observer from World Bank Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC. |
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