This paper uses detailed cross country and over time data to show that despite various limitations, the QIZs of Jordan and subsequently Egypt, along with certain US FTAs, have contributed significantly to an increase in participating countries’ shares of exports to the US in the nine most common categories of clothing items for which the effects of tariff and quota exemptions are likely to be strongest. These influences, although perhaps diminishing after a certain period of time, are stronger than those of exchange rate, transport cost and changes in openness over time. What is perhaps most surprising is that these effects are quite clearly discernable even in the case of Jordan despite its lack of relevant raw materials and prior industrial experience. The results also demonstrate the very significant effects exercised by quotas and their phasing out on the changing country shares in US imports of the selected commodities.
Topics in Middle Eastern and North African Economies
Middle East Economic Association and Loyola University Chicago
Carter, Austin; Gong, Yun; and Nugent, Jeffrey B., "Measuring Trade Advantages of the Qualifying Industrial Zones Program of Jordan and Egypt Offered by the United States for Having Signed Peace Treaties with Israel". Topics in Middle Eastern and North African Economies, electronic journal, 17, Middle East Economic Association and Loyola University Chicago, 2015, http://www.luc.edu/orgs/meea/
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