Modeling the Effects of the MFA Liberalization on Philippine Clothing Trade

Abstract

Opinions about the Multi-Fibre Agreement (MFA) vary not only between importers and exporters but also within these groups depending on the costs and benefits accorded to each. This paper attempts to quantify the effects of MFA liberalization on developing countries with a focus on the Philippines. A review of the existing literature on effects of MFA measurement is conducted. The effects of MFA removal on the importing and exporting countries included in the model are also discussed.