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Political Influence in a New Anti-Dumping Regime: Evidence from Mexico

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  • Francois, Joseph
  • Niels, Gunnar

Abstract

We examine the role of political factors in Mexico?s anti-dumping regime, considering both the characteristics of target countries subject to anti-dumping duties and industry-specific factors for sectors receiving protection. Our results are broadly consistent with the recent theoretical literature on endogenous protection, in terms of both the political costs and the political benefits of providing protection. They are also in line with the existing empirical literature on anti-dumping, which is focused primarily on the experience of the US and the EU. Our results also suggest that WTO Membership of trading partners increases the political costs of supplying administered protection.

Suggested Citation

  • Francois, Joseph & Niels, Gunnar, 2004. "Political Influence in a New Anti-Dumping Regime: Evidence from Mexico," CEPR Discussion Papers 4297, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:4297
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    Cited by:

    1. Veysel Avsar, 2013. "Antidumping, Retaliation Threats, and Export Prices," The World Bank Economic Review, World Bank, vol. 27(1), pages 133-148.
    2. Park, Soonchan, 2009. "The trade depressing and trade diversion effects of antidumping actions: The case of China," China Economic Review, Elsevier, vol. 20(3), pages 542-548, September.
    3. Kara M. Reynolds, 2009. "From Agreement to Application: An Analysis of Determinations under the WTO Antidumping Agreement," Review of International Economics, Wiley Blackwell, vol. 17(5), pages 969-985, November.
    4. Robert M. Feinberg & Kara M. Reynolds, 2008. "Friendly Fire? The Impact of US Antidumping Enforcement on US Exporters," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(2), pages 366-378, July.
    5. Benjamin H. Liebman & Kasaundra M. Tomlin, 2008. "Safeguards and Retaliatory Threats," Journal of Law and Economics, University of Chicago Press, vol. 51(2), pages 351-376, May.
    6. Carolyn L. Evans & Shane M. Sherlund, 2011. "Are Antidumping Duties for Sale? Case‐Level Evidence on the Grossman‐Helpman Protection for Sale Model," Southern Economic Journal, John Wiley & Sons, vol. 78(2), pages 330-357, October.
    7. Chad P. Bown, 2008. "The Wto And Antidumping In Developing Countries," Economics and Politics, Wiley Blackwell, vol. 20(2), pages 255-288, June.
    8. Niels, Gunnar & ten Kate, Adriaan, 2006. "Antidumping policy in developing countries: Safety valve or obstacle to free trade?," European Journal of Political Economy, Elsevier, vol. 22(3), pages 618-638, September.
    9. Ning Meng & Chris Milner & Huasheng Song, 2016. "Differences in the determinants and targeting of antidumping: China and India compared," Applied Economics, Taylor & Francis Journals, vol. 48(43), pages 4083-4097, September.
    10. Baomin Dong, 2013. "Cost-Based Anti-dumping as a Repeated Game," The Economic Record, The Economic Society of Australia, vol. 89, pages 95-105, June.
    11. Robert M. Feinberg & Kara M. Reynolds, 2016. "How Do Countries Respond to Antidumping Filings? Dispute Settlement and Retaliatory Antidumping," Working Papers 2016-04, American University, Department of Economics.
    12. Gunnar Niels & Joseph Francois, 2006. "Business Cycles, the Exchange Rate, and Demand for Antidumping Protection in Mexico," Review of Development Economics, Wiley Blackwell, vol. 10(3), pages 388-399, August.
    13. Bown, Chad P., 2006. "The World Trade Organization and antidumping in developing countries," Policy Research Working Paper Series 4014, The World Bank.
    14. Robert M. Feinberg & Kara M. Reynolds, 2006. "The Spread of Antidumping Regimes and the Role of Retaliation in Filings," Southern Economic Journal, John Wiley & Sons, vol. 72(4), pages 877-890, April.
    15. Yi Liu & Ning Zhang, 2015. "Sustainability of Trade Liberalization and Antidumping: Evidence from Mexico’s Trade Liberalization toward China," Sustainability, MDPI, vol. 7(9), pages 1-20, August.
    16. Bown, Chad P. & Crowley, Meredith A., 2006. "Policy externalities: How US antidumping affects Japanese exports to the EU," European Journal of Political Economy, Elsevier, vol. 22(3), pages 696-714, September.
    17. Martin, Alberto & Vergote, Wouter, 2008. "On the role of retaliation in trade agreements," Journal of International Economics, Elsevier, vol. 76(1), pages 61-77, September.
    18. Carolyn L. Evans & Shane M. Sherlund, 2011. "Are Antidumping Duties for Sale? Case-Level Evidence on the Grossman-Helpman Protection for Sale Model," Southern Economic Journal, John Wiley & Sons, vol. 78(2), pages 330-357, October.
    19. Carolyn L. Evans & Shane M. Sherlund, 2006. "Are antidumping duties for sale? case-level evidence on the Grossman-Helpman protection for sale model," International Finance Discussion Papers 888, Board of Governors of the Federal Reserve System (U.S.).
    20. Carolyn L. Evans & Shane M. Sherlund, 2011. "Are Antidumping Duties for Sale? Case-Level Evidence on the Grossman-Helpman Protection for Sale Model," Southern Economic Journal, Southern Economic Association, vol. 78(2), pages 330-357, October.

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    More about this item

    Keywords

    Anti-dumping; Political economy of trade policy; Mexico; Endogenous import protection; Endogenous tariffs;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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