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Cumulation and ITC Decision-Making: The Sum of the Parts Is Greater Than the Whole

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Author Info
Hansen, Wendy L
Prusa, Thomas J
Abstract

In 1984, Congress amended the antidumping and countervailing duty laws, mandating that the International Trade Commission (ITC) 'cumulate' imports across countries when determining injury. The authors estimate that cumulation increases the probability of an affirmative injury determination by 20 to 30 percent and has changed the ITC's decision (from negative to affirmative) for about one-third of cumulated cases. They also show that the protective effect of cumulation increases as the number of countries involved increases, holding import market share constant. That is, cumulated imports have a superadditive effect on ITC decision making. Copyright 1996 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Economic Inquiry.

Volume (Year): 34 (1996)
Issue (Month): 4 (October)
Pages: 746-69
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Handle: RePEc:oup:ecinqu:v:34:y:1996:i:4:p:746-69

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  1. Bruce A. Blonigen & Robert C. Feenstra, 1996. "Protectionist Threats and Foreign Direct Investment," NBER Working Papers 5475, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Poonam Gupta & Arvind Panagariya, 2006. "Injury Investigations in Antidumping and the Super-Additivity Effect: A Theoretical Explanation," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(1), pages 151-164, April. [Downloadable!] (restricted)
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  3. Tianshu Chu & Thomas J. Prusa, 2004. "The Reasons for and the Impact of Antidumping Protection: The Case of People's Republic of China," Economics Study Area Working Papers 69, East-West Center, Economics Study Area. [Downloadable!]
  4. Douglas Irwin, 2004. "The Rise of U.S. Antidumping Actions in Historical Perspective," NBER Working Papers 10582, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Arvind Panagariya & Poonam Gupta, 2003. "Injury Investigations in Anti-dumping and the Super-Additivity," International Trade 0308008, EconWPA. [Downloadable!]
  6. Rude, James & Gervais, Jean-Philippe, 2007. "Biases in calculating dumping Margins: The case of cyclical products," MPRA Paper 2745, University Library of Munich, Germany. [Downloadable!]
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  7. Chad P. Bown, 2007. "China's WTO Entry: Antidumping, Safeguards, and Dispute Settlement," NBER Working Papers 13349, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Douglas A. Irwin, 2005. "The Rise of U.S. Antidumping Activity in Historical Perspective," IMF Working Papers 05/31, International Monetary Fund. [Downloadable!]
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  9. Chad Bown & Meredith Crowley, 2004. "China's export growth and U.S. trade policy," Working Paper Series WP-04-28, Federal Reserve Bank of Chicago. [Downloadable!]
  10. Bown, Chad P., 2005. "Trade remedies and World Trade Organization dispute settlement : Why are so few challenged?," Policy Research Working Paper Series 3540, The World Bank. [Downloadable!]
  11. Thomas J. Prusa, 1998. "Cumulation and antidumping: A challenge to competition," Departmental Working Papers 199814, Rutgers University, Department of Economics. [Downloadable!]
  12. Jai S. Mah, 2003. "Countervailing Duties in the USA," Working papers 2003-45, University of Connecticut, Department of Economics. [Downloadable!]
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