2023-09-28 14:46:10 +00:00
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abstract: 'The phased elimination of Multi Fibre Arrangements (MFA) for textile and
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apparel has been one of the most compelling trade policy reforms that
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removed a system of bilateral quotas. The reform brought in significant
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changes in the industrial structures for exporters from the south,
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including India. Has the labour-intensive high-employment textile and
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clothing industry in India benefited from this global move towards freer
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trade? For India, the industry has witnessed unprecedented market
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concentration of export-oriented firms. Firm-level empirical estimate
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illustrates that workers in the export-oriented firms in India are
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adversely affected due to withdrawal of quota. Accumulation of net fixed
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assets and growth of sales impart positive impact on firm-level wages
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that cannot outweigh negative impact due to fall in exports. We also
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find negative impact of profit on aggregate wage bill for the industry
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with firms spread over 11 major states in India. We show that the mean
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deviation of industry-level wage is positively and significantly
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associated with mean deviation of the number of factories at the state
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level and negatively with profit. Finally, a brief analytical exercise
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obtains conditions under which joint withdrawal of quota and import
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tariff could raise the aggregate labour income in developing countries,
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in general.'
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affiliation: 'Kar, M (Corresponding Author), Womens Christian Coll, Kolkata, India.
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Kar, Mausumi, Womens Christian Coll, Kolkata, India.
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Kar, Saibal, Calcutta Univ, Dept Econ, Kolkata, India.
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Kar, Saibal, Inst Study Labor IZA, Bonn, Germany.'
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author: Kar, Mausumi and Kar, Saibal
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author_list:
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- family: Kar
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given: Mausumi
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- family: Kar
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given: Saibal
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da: '2023-09-28'
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doi: 10.1111/twec.12437
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eissn: 1467-9701
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files: []
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issn: 0378-5920
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journal: WORLD ECONOMY
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keywords-plus: TRADE REFORMS; GLOBALIZATION; PERFORMANCE; INCOME
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language: English
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month: JUL
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number: '7'
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number-of-cited-references: '29'
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orcid-numbers: Kar, Saibal/0000-0001-8134-1517
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pages: 1473-1493
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papis_id: ae6f62c25874cc288cef4a2a51d44c91
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ref: Kar2017multifibre
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researcherid-numbers: Kar, Saibal/AAC-8174-2019
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times-cited: '0'
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title: 'Multi Fibre Arrangement and Wage Inequality: Firm and State-level Evidence
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from India and a Theoretical Model'
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2023-10-01 08:15:07 +00:00
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type: article
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2023-09-28 14:46:10 +00:00
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unique-id: WOS:000405288600009
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usage-count-last-180-days: '0'
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usage-count-since-2013: '8'
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volume: '40'
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web-of-science-categories: Business, Finance; Economics; International Relations
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year: '2017'
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