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• W1565453209 abstract "Textile and apparel products have long been among China’s main exports. The abolishment of the MultiFiber Agreement (MFA) in January 2005 offered additional export growth opportunities for these products originating in China. To meet the derived demand for cotton, it has been predicted that cotton imports would increase too. However, in its WTO accession agreement China actually scheduled import restrictions on cotton in the form of a tariffrate quota (TRQ). This TRQ serves the purposes of ensuring a certain amount of market access for cotton exporters with a nominal in-quota tariff. At the same time it provides a shield for domestic cotton producers through the high over-quota tariff (40 percent as opposed to the one-percent in-quota rate). When the quota is fi lled, the TRQ will likely restrict China’s access to the imported cotton needed by its textile and clothing industry, thereby undermining the industry’s ability to realize the export opportunities provided through the cessation of the MFA. In responding to the end of the MFA, it would be reasonable for the textile and apparel industry to lobby for the reduction of import restrictions on cotton. Indeed, at least for 2005, the Chinese government decided to treat the 2.57 million tons of cotton import as in-quota import, which was scheduled to be only 0.894 million tons (WTO 2006). Against this background, a set of interesting research questions emerges: to what extent are cotton imports into China linked to the development of world textile and apparel markets? Has China become more responsive to world market conditions following the end of the MFA? In addition, surges of Chinese textile and apparel exports have already caused uneasiness among its trading partners and resulted in temporary trade sanctions. How do these temporary setbacks infl uence China’s import demand for cotton? Answers to these questions will improve the understanding of important policy trends in China and the input-demand behavior of Chinese textile and apparel industry. To answer the above, an econometric study with copious time-series data on the domestic demand, supply, and stocks of cotton as well as on exports of its downstream products would be desirable, coupled with data on detailed policy changes in China and the multilateral trading system. However, monthly or quarterly time-series data on Chinese agricultural markets with adequate sample points for econometric analyses are rare, and when they do exist are logistically diffi cult to collect. We procured data on monthly Chinese imports of cotton and the values of such imports from January 2001 through January 2007 (hereafter, 2001:01–2007: 01), although extraction of such data were diffi cult.1 Other monthly data on Chinese usage and beginning and ending stocks are not available. Nonetheless, the quantities and values of cotton exports do provide the imported quantity and its price proxied by its unit value. Our analysis may be the literature’s fi rst monthly econometric analysis on China’s cotton import market. Given our limited sample of Chinese cotton imports and prices, which the evidence below show to be non-stationary in levels, we propose a rather simple cointegrated model of the following monthly series:" @default.
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• W1565453209 date "2008-01-01" @default.
• W1565453209 modified "2023-09-27" @default.
• W1565453209 title "Exploiting the Cointegration Properties of China’s Monthly Cotton Import Market and World Apparel Market Conditions: A Preliminary Analysis" @default.
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• W1565453209 doi "https://doi.org/10.22004/ag.econ.55585" @default.
• W1565453209 hasPublicationYear "2008" @default.
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