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Political Influence in a New Antidumping Regime: Evidence from Mexico

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  • Joseph F. Francois

    ()
    (Faculty of Economics, Erasmus Universiteit Rotterdam, and CEPR)

  • Gunnar Niels

    ()
    (OXERA, and Erasmus Universiteit Rotterdam)

Abstract

We examine the role of political factors in Mexico’s antidumping regime, considering both the characteristics of target countries subject to antidumping 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 antidumping, which is focused primarily on the experience of the U.S. and the EU. Our results also suggest that WTO Membership of trading partners increases the political costs of supplying administered protection.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 04-011/2.

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Date of creation: 22 Jan 2004
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Handle: RePEc:dgr:uvatin:20040011

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Keywords: antidumping; political economy of trade policy; Mexico; endogenous import protection; endogenous tariffs;

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References

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  1. Thomas Prusa & Susan Skeath, 2002. "The economic and strategic motives for antidumping filings," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 138(3), pages 389-413, September.
  2. kishore gawande & pravin krishna, 2005. "The Political Economy of Trade Policy: Empirical Approaches," International Trade, EconWPA 0503003, EconWPA.
  3. Hillman, Arye L & Ursprung, Heinrich W, 1988. "Domestic Politics, Foreign Interests, and International Trade Policy," American Economic Review, American Economic Association, vol. 78(4), pages 719-45, September.
  4. Grossman, Gene & Helpman, Elhanan, 1993. "Protection for Sale," CEPR Discussion Papers, C.E.P.R. Discussion Papers 827, C.E.P.R. Discussion Papers.
  5. Robert E. Baldwin & Jeffrey W. Steagall, 1993. "An Analysis of Factors Influencing ITC Decisions in Antidumoing, Countervailing Duty and Safeguard Cases," NBER Working Papers 4282, National Bureau of Economic Research, Inc.
  6. Mayer, Wolfgang, 1984. "Endogenous Tariff Formation," American Economic Review, American Economic Association, vol. 74(5), pages 970-85, December.
  7. Joseph Francois & Gunnar Niels, 2003. "Business Cycles, the Current Account, and Administered Protection in Mexico," Tinbergen Institute Discussion Papers 03-054/2, Tinbergen Institute.
  8. Bruce A. Blonigen & Chad P. Bown, 2001. "Antidumping and Retaliation Threats," NBER Working Papers 8576, National Bureau of Economic Research, Inc.
  9. Hillman, Arye L, 1982. "Declining Industries and Political-Support Protectionist Motives," American Economic Review, American Economic Association, vol. 72(5), pages 1180-87, December.
  10. Finger, J M & Hall, H Keith & Nelson, Douglas R, 1982. "The Political Economy of Administered Protection," American Economic Review, American Economic Association, vol. 72(3), pages 452-66, June.
  11. Grossman, Gene M & Helpman, Elhanan, 1996. "Electoral Competition and Special Interest Politics," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 63(2), pages 265-86, April.
  12. Tharakan, P. K. M. & Waelbroeck, J., 1994. "Antidumping and countervailing duty decisions in the E.C. and in the U.S.: An experiment in comparative political economy," European Economic Review, Elsevier, vol. 38(1), pages 171-193, January.
  13. Andreas Waldkirch, 2003. "The 'new regionalism' and foreign direct investment: the case of Mexico," The Journal of International Trade & Economic Development, Taylor & Francis Journals, Taylor & Francis Journals, vol. 12(2), pages 151-184.
  14. Maurizio Zanardi, 2002. "Antidumping: What are the Numbers?," Working Papers, Business School - Economics, University of Glasgow 2002_15, Business School - Economics, University of Glasgow.
  15. Ronald Findlay & Stanislaw Wellisz, 1982. "Endogenous Tariffs, the Political Economy of Trade Restrictions, and Welfare," NBER Chapters, in: Import Competition and Response, pages 223-244 National Bureau of Economic Research, Inc.
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Cited by:
  1. 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, Springer, vol. 144(2), pages 366-378, July.
  2. 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.
  3. Bown, Chad P., 2006. "The World Trade Organization and antidumping in developing countries," Policy Research Working Paper Series 4014, The World Bank.
  4. Alberto Martin & Wouter Vergote, 2005. "On the role of retaliation in trade agreements," Economics Working Papers 914, Department of Economics and Business, Universitat Pompeu Fabra, revised Apr 2008.
  5. 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, Board of Governors of the Federal Reserve System (U.S.) 888, Board of Governors of the Federal Reserve System (U.S.).
  6. 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.

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