Global Effects of Developed Country Trade Restrictions on Textiles and Apparel

This paper uses an applied general equilibrium model to analyze the impacts of quota and tariff restrictions used by developed countries against textile and clothing imports from developing countries. In the model, countries are represented by their actual size in terms of GDP, weakening rent transfer effects compared to partial equilibrium analysis. Results, based on 1986 data, suggest annual global gains from elimination of quotas and tariffs of around $23 billion. In aggregate, developing countries gain around $8 billion, suggesting that gains to developing countries from improved access more than offset losses from foregone rent transfers as quotas and tariffs are abolished. Copyright 1990 by Royal Economic Society.