Trade liberalisation in T&C: an overview of the welfare effects. (27th August 2010)

• Record Type: Journal Article
• Authors: Dadakas, Dimitrios; Katranidis, Stelios
• Is Part Of: International journal of trade and global markets. Volume 3:Number 3(2010)
• Page Start: 247
• Page End: 266
• Publication Date: 2010-08-27
• Subjects: multi-market -- single-market approach -- applied welfare analysis -- bootstrap -- T&amp -- amp -- C -- textiles and clothing -- trade liberalisation -- MFA -- multi-fibre agreement -- ATC -- cotton yarn -- garment industry -- apparel industry -- Greece -- Portugal -- Spain -- Turkey; International trade -- Periodicals; Globalization -- Economic aspects -- Periodicals; 382.05
• Languages: English
• ISSNs: 1742-7541

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.