Biases in Calculating Dumping Margins: The Case of Cyclical Products
AbstractA dumping investigation involves comparing export prices with a “normal value” loosely defined as the price in the exporter's domestic market observed in the course of normal trade. However, domestic sales with prices below production costs are excluded from the computation of a normal value. The paper illustrates how price cycles affect the magnitude of estimated dumping margins. The empirical analysis focuses on Canadian hog exports to the United States and U.S. potato exports to Canada. The estimated period and amplitude of each price cycles result in average dumping margins for Canadian hogs and U.S. potato exports of 11.5% and 5.9%, respectively. Biases in dumping margins depend on the nature of the cycle, the period of investigation, and the average production cost estimate. Copyright 2009, Oxford University Press.
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Bibliographic InfoArticle provided by Agricultural and Applied Economics Association in its journal Review of Agricultural Economics.
Volume (Year): 31 (2009)
Issue (Month): 1 ()
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Other versions of this item:
- Rude, James & Gervais, Jean-Philippe, 2007. "Biases in calculating dumping Margins: The case of cyclical products," MPRA Paper 2745, University Library of Munich, Germany.
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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