Empirical Study On Positive Quota Of Textile Export In China

Quota is always the focus in the textile and clothing trade of the world. According to the ATC, on January 1, 2005, the distorted trade regime on textiles and clothing trade which was based on the Multi-Fiber Arrangement (MFA) made in 1974 was abolished. The trade of textile got into the post-MFA ages from then on. Just owing to fast growth of the textile export in our country , EU and the United States take 'market disturbance' as an excuse and successively signed an agreement with our country to control the quantity of export from our country. To build a reasonable arrangement for export, our government imposed temporary license on part of textile and clothing product, since then, we take active quota system instead of the original passive quota system. Obviously, the institutional change has brought about great impacts on the world market of textiles and clothing. So the paper reviews the economic effect of positive quota and hopes our government or enterprises can make full use of the quota which is provided by EU and the United States in the coming two years.On the basis of absorbing foreign and national research, the paper mainly does the following work: using the theory of microeconomics to establish economic models, analyzing what effect quota has taken to cost, then we can find the relationship between quota and supply and provide boundary of the quota price for forbidding order-transfer; Secondly, making use of the theory of international economics, the paper analyzes the change of welfare and the effect of trade-transfer; to confirm the theoretical study, the paper collects data of Sino-US textile trade to find the change of price, quantity and market share after 2005. Finally, the paper concludes suggestions for our export restriction and quota distribution.Using theories of supply and demand to research the quota's influence is the creative point of this paper. The paper still made use of the latest data of 21 types of textile products in 2006. To make the result impersonal, I have taken a deep investigation of the data.