TY  - JOUR
AU  - Trela,Irene
AU  - Whalley,John
TI  - Internal Quota Allocation Schemes and the Costs of the MFA
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3627
PY  - 1991
Y2  - February 1991
UR  - http://www.nber.org/papers/w3627
L1  - http://www.nber.org/papers/w3627.pdf
N1  - Author contact info:
John Whalley
Department of Economics
Social Science Centre
University of Western Ontario
London, ON N6A 5C2
CANADA
Tel: 519/661-3509
Fax: 519/661-3666
E-Mail: jwhalley@uwo.ca
AB  - This paper suggests that schemes used within developing countries to allocate textile export quota among domestic producers typically have more severe negative effects on developing country economic performance than the MFA export quotas themselves. We summarize allocation schemes in 17 countries, highlighting common 'lock-in' and 'rent dissipation' effects of such schemes. We then use a global general equilibrium model to evaluate the effects of MFA removal with and without these additional effects. Results indicate that estimates of gains to developing countries from an MFA removal are larger and by significant orders of magnitude (we suggest a factor of 8) when internal quota allocation schemes are also included. Removing the negative effects of quota allocation schemes thus seems to clearly dominate traditional access benefits to developing countries from MFA removal.
ER  -