Trade liberalisation in T&C: an overview of the welfare effects

Dimitrios Dadakas and Stelios Katranidis

International Journal of Trade and Global Markets, 2010, vol. 3, issue 3, 247-266

Abstract: The objective of this paper is to examine the effects that trade liberalisation in Textiles and Clothing (T&C) had on the welfare of European producers of cotton-yarn. We employ multi-market theory and a single-market approach to examine the price-induced welfare effects in four major European T&C producing countries namely, Greece, Portugal, Spain and Turkey. Results show that the liberalisation of trade had a substantial negative impact on producers' welfare in all four countries. Welfare and sensitivity analysis suggests that, while cotton-yarn price-decreases and labour-cost increases are expected to further dampen producers' welfare, the adoption of new technologies can substantially assist the competitiveness of European products in the world markets.

Keywords: multi-market; single-market approach; applied welfare analysis; bootstrap; T&C; textiles and clothing; trade liberalisation; MFA; multi-fibre agreement; ATC; cotton yarn; garment industry; apparel industry; Greece; Portugal; Spain; Turkey. (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijtrgm:v:3:y:2010:i:3:p:247-266

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