This case study analyses the effect that the end of the Multi-Fibre Agreement (MFA) has had on innovation in the Sri Lankan textile and clothing sector. The ending of the quota system under the MFA led to an increase in the US and EU markets which has motivated a large number of innovations in...

This paper is one of five case studies which is a part of a larger project looking at the various effects that trade and investment can have on innovation. This paper studies the effect of the ending of the Multi-Fibre Agreement (MFA) on innovation in the Sri Lankan textile and clothing sector....

The positive association between trade openness and income has been debated over years due to serious estimation flaws prevailing in the cross-country empirical trade literature. The present paper contributes to this debate by re-examining the long-run relationship between trade openness and...

We study the implications of reference dependency and loss aversion features of individual preferences in trade policy determination and show these behavioural features help explain why governments change the trade restrictiveness in order to cushion the domestic prices from world price shocks....

A voluminous literature estimates price transmission from world markets to domestic markets ignoring unobserved common factors that affect all the domestic markets. This paper reconsiders the long-run and short-run transmission elasticity of world commodity price shocks to domestic markets using...