Abstract

ABSTRACT This study examines the effects that increasing imports of textiles have on employment in three selected European countries—the Netherlands, France, and the United Kingdom. The countries were chosen because each respective government has adopted distinctive industrial policies towards the international trade of textiles. As we show, the most open economy (the Netherlands) benefits the greatest from trade. On the other hand, the most domestically protected economy (France) is adversely affected by the international market. These results indicate that the “new protectionism” of the 1970s and 1980s is an incorrect policy prescription for nations to follow if they want to maintain viable efficient industries.

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