A Primer on the MFA Maze

Jaime de Melo and Riccardo Faini

No 716, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: The paper identifies the potential sources of allocative inefficiency generated by the Multi-Fiber Agreements (MFA) and examines the evidence for such inefficiencies. Five sources of inefficiency are identified relating to inefficient allocations across countries, across consumers, and among firms within constrained countries. Evidence is first provided from trends in import shares for aggregate categories of textiles and clothing before and during the MFA. Second, evidence is provided from a detailed examination of quota utilization rates and price differentials among EC importing countries.

Keywords: Allocative Efficiency; Multi-Fiber Agreements; Quotas (search for similar items in EconPapers)
JEL-codes: F13 (search for similar items in EconPapers)
Date: 1992-09
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Citations: View citations in EconPapers (7)

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Related works:
Journal Article: A Primer on the MFA Maze (1995)
Working Paper: A primer on the MFA maze (1993)
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