The End of Textiles Quotas: A Case Study of the Impacton Bangladesh

Montfort Mlachila and Yongzheng Yang

No 2004/108, IMF Working Papers from International Monetary Fund

Abstract: This paper evaluates the effects on the Bangladeshi economy of phasing out textile and clothing (T&C) quotas currently maintained by industrial countries. The planned abolition of the quotas under the Agreement on Textiles and Clothing in 2005 will alter the competitiveness of various exporting countries. Bangladesh relies heavily on textile and clothing exports and is potentially very vulnerable to this change in competitiveness. Based on assessments of quota restrictiveness and export similarity, and an analysis of its supply constraints, the paper concludes that Bangladesh could face significant pressure on its balance of payments, output, and employment when the quotas are eliminated.

Keywords: WP; RMG export; trade weight; export similarity; quota removal; RMG sector; Bangladesh; MFA; ATC; textiles; clothing; quotas; Bangladesh enterprise Institute; garments export; quota price; quota phase-out; knitwear sector; aggregate quota; textile and clothing; quota rent; Exports; Imports; Export performance; Foreign direct investment; Competition; Global (search for similar items in EconPapers)
Pages: 38
Date: 2004-06-01
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Citations: View citations in EconPapers (28)

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