The World Trade Organization Agreement on Textiles and Clothing led to the termination of quantitative restrictions at the end of 2004. Under the agreement, countries will no longer be able to protect their own industries by means of restrictions on imports of textile and clothing products....

This paper assesses the existence and extent of transition cost for the OECD economies associated with the increasing Chinese competition in the export markets. We find that intensified Chinese competition is an important factor in explaining structural changes not only within the manufacturing...