Effects of Trade Liberalization on Textile and Apparel Exports from Sub-Sahara Africa

This paper estimates the impact of market access liberalization in high-income countries on sub-Saharan African exports. The methodology exploits the large reduction in trade barriers that was induced by three unilateral trade liberalization initia...

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Main Authors:	Van Biesebroeck, Johannes, Zaurino, Elena
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	GLOBAL VALUE CHAIN TRADE LIBERALIZATION TRADE POLICY EXPORTS TEXTILES AND APPAREL TRIPLE-DIFFERENCE PREFERENTIAL TRADE TRADE AGREEMENTS MULTI-FIBER ARRANGEMENT GENERAL SYSTEM OF PREFERENCES
Online Access:	http://documents.worldbank.org/curated/en/466961562786318149/Effects-of-Trade-Liberalization-on-Textile-and-Apparel-Exports-from-Sub-Sahara-Africa http://hdl.handle.net/10986/32056

id	okr-10986-32056
recordtype	oai_dc
spelling	okr-10986-320562022-09-20T00:14:48Z Effects of Trade Liberalization on Textile and Apparel Exports from Sub-Sahara Africa Van Biesebroeck, Johannes Zaurino, Elena GLOBAL VALUE CHAIN TRADE LIBERALIZATION TRADE POLICY EXPORTS TEXTILES AND APPAREL TRIPLE-DIFFERENCE PREFERENTIAL TRADE TRADE AGREEMENTS MULTI-FIBER ARRANGEMENT GENERAL SYSTEM OF PREFERENCES This paper estimates the impact of market access liberalization in high-income countries on sub-Saharan African exports. The methodology exploits the large reduction in trade barriers that was induced by three unilateral trade liberalization initiatives: (1) the dismantling of the Multi-Fiber Arrangement, (2) the African Growth and Opportunity Act in the United States, and (3) the extension of EU trade preferences for developed countries through its Everything-but-Arms program and the General System of Preferences. Using detailed product-level information at the 6-digit level of the Harmonized System and a triple-difference empirical specification, the usual endogeneity-of-policy critique is flexibly controlled for. The results indicate strongly positive export effects, which are especially large for textile, apparel, and leather products, and tend to be realized fully within 5 years. Each percentage point reduction in import tariffs raises exports to the EU by 0.73 percent and to the United States by 0.30 percent; effects are two to three times as large for textiles. The presence of strong Chinese imports has ambiguous effects on countries' ability to take advantage of trade liberalization as the impact on the export effects to the EU and the United States show an opposite sign. 2019-07-11T16:05:14Z 2019-07-11T16:05:14Z 2019-07 Working Paper http://documents.worldbank.org/curated/en/466961562786318149/Effects-of-Trade-Liberalization-on-Textile-and-Apparel-Exports-from-Sub-Sahara-Africa http://hdl.handle.net/10986/32056 English Policy Research Working Paper;No. 8936 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Sub-Saharan Africa
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	GLOBAL VALUE CHAIN TRADE LIBERALIZATION TRADE POLICY EXPORTS TEXTILES AND APPAREL TRIPLE-DIFFERENCE PREFERENTIAL TRADE TRADE AGREEMENTS MULTI-FIBER ARRANGEMENT GENERAL SYSTEM OF PREFERENCES
spellingShingle	GLOBAL VALUE CHAIN TRADE LIBERALIZATION TRADE POLICY EXPORTS TEXTILES AND APPAREL TRIPLE-DIFFERENCE PREFERENTIAL TRADE TRADE AGREEMENTS MULTI-FIBER ARRANGEMENT GENERAL SYSTEM OF PREFERENCES Van Biesebroeck, Johannes Zaurino, Elena Effects of Trade Liberalization on Textile and Apparel Exports from Sub-Sahara Africa
geographic_facet	Africa Sub-Saharan Africa
relation	Policy Research Working Paper;No. 8936
description	This paper estimates the impact of market access liberalization in high-income countries on sub-Saharan African exports. The methodology exploits the large reduction in trade barriers that was induced by three unilateral trade liberalization initiatives: (1) the dismantling of the Multi-Fiber Arrangement, (2) the African Growth and Opportunity Act in the United States, and (3) the extension of EU trade preferences for developed countries through its Everything-but-Arms program and the General System of Preferences. Using detailed product-level information at the 6-digit level of the Harmonized System and a triple-difference empirical specification, the usual endogeneity-of-policy critique is flexibly controlled for. The results indicate strongly positive export effects, which are especially large for textile, apparel, and leather products, and tend to be realized fully within 5 years. Each percentage point reduction in import tariffs raises exports to the EU by 0.73 percent and to the United States by 0.30 percent; effects are two to three times as large for textiles. The presence of strong Chinese imports has ambiguous effects on countries' ability to take advantage of trade liberalization as the impact on the export effects to the EU and the United States show an opposite sign.
format	Working Paper
author	Van Biesebroeck, Johannes Zaurino, Elena
author_facet	Van Biesebroeck, Johannes Zaurino, Elena
author_sort	Van Biesebroeck, Johannes
title	Effects of Trade Liberalization on Textile and Apparel Exports from Sub-Sahara Africa
title_short	Effects of Trade Liberalization on Textile and Apparel Exports from Sub-Sahara Africa
title_full	Effects of Trade Liberalization on Textile and Apparel Exports from Sub-Sahara Africa
title_fullStr	Effects of Trade Liberalization on Textile and Apparel Exports from Sub-Sahara Africa
title_full_unstemmed	Effects of Trade Liberalization on Textile and Apparel Exports from Sub-Sahara Africa
title_sort	effects of trade liberalization on textile and apparel exports from sub-sahara africa
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/466961562786318149/Effects-of-Trade-Liberalization-on-Textile-and-Apparel-Exports-from-Sub-Sahara-Africa http://hdl.handle.net/10986/32056
_version_	1764475696608968704

Effects of Trade Liberalization on Textile and Apparel Exports from Sub-Sahara Africa

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