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Overcoming Free Riding: A Cross Country Analysis of Firm Participation in Antidumping Petitions

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  • Kara M. Reynolds

Abstract

This research is one of the first attempts to investigate the proliferation of antidumping protection from the firm-level and, in particular, to study the reasons why the free-riding problem may be more or less severe in particular countries or industries. Using a panel of data on the number of firms filing antidumping petitions in 10 countries between 1995 and 2005, I study the determinants of the industry's ability to overcome the free-riding problem. I find clear evidence that more firms will participate in antidumping petitions the lower the cost of filing; these filing costs significantly decrease in such variables as the number of countries targeted at one time and the level of development of the country. There is little evidence, however, that firms perceive that the expected benefits of the petition will be higher if they choose to participate, thus alleviating the free-rider problem. A separate statistical evaluation of actual case outcomes suggests that this perception may be valid.

Suggested Citation

  • Kara M. Reynolds, 2009. "Overcoming Free Riding: A Cross Country Analysis of Firm Participation in Antidumping Petitions," Working Papers 2009-01, American University, Department of Economics.
    • Handle: RePEc:amu:wpaper:2009-01
    DOI: 10.17606/cxsf-2v41
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    References listed on IDEAS

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    More about this item

    Keywords

    antidumping; free riding;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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