Foreign macroeconomic conditions and antidumping actions: evidence from the USA

This study investigates the influence of foreign macroeconomic conditions on antidumping actions. We focus on the role of macroeconomic conditions in exporting countries, although previous studies have emphasized the role of macroeconomic conditions in importing countries. Our theoretical analysis shows that dumping exports is more likely to occur when the exporting country’s economic condition is good. The appreciation of the import country’s currency is less likely to induce dumping exports, whereas it causes damage to the import country’s industry. Using the data on antidumping activity in the USA, we find that higher economic growth in exporting countries is positively related to antidumping initiatives, dumping determinations, and injury determinations. These antidumping actions against an exporting country are also associated with increased imports from the country. In contrast, the appreciation of the US dollar against an exporting country’s currency is linked only to the injury determination against the country. Antidumping measures are easy to use to protect domestic industries from an increase in imports from booming foreign economies.