Impact of Clothing Tariff on Consumer Surplus in Korea after WTO Agreements(Part I)

WTO 체제가 의류산업에 미치는 영향(제1보) -관세율변화가 최종 의류소비자에게 미치는 영향-

  • Published : 1998.01.01

Abstract

The objective of this study was to estimate the quantitative loss of the consumer surplus due to the tariffs on clothing imports during the WTO starting periods. For 1984-1996, the import price elasticity of the clothing was estimated from the regression of pet capita clothing imports on Per capita GNP, import price index and domestic producer price index. Then the quantitative losses of the consumer surplus in clothing were obtained from the simplified formula for 1990-1995. In spite of the decrease in textiles St clothing tariff rates, consumer costs were increasing, which was caused by the tremendous increase in clothing imports during the same period. The loss of the consumer surplus was 7131 billion wonts in 1995, which accounted for 6.4% of the total clothing expenditure.

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