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Why Don't Foreign Firms Cooperate in U.S. Antidumping Investigations?: An Emperical Analysis

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Author Info

  • Michael Owen Moore

    ()
    (Department of Economics/Institute for International Economic Policy, George Washington University)

  • Alan Fox

    ()
    (U.S. International Trade Commission)

Abstract

Foreign firms face punitive duties if they do not cooperate with the US Department of Commerce (DOC) in antidumping procedures. For example, 37% of all foreign firms involved in antidumping investigations in the US chose faced “facts available” margins for the 1995-2002 period, with average antidumping duties of 31% for cooperating foreign firms, compared to 87% for those who do not. The existing literature has focused on how DOC discretion has led to foreign firm non-cooperation. This paper instead examines individual foreign firm’s decisions about whether to cooperate during this same period. We find evidence that non-cooperation is consistent with a model of foreign firms rationally choosing not to cooperate, rather than solely as a result of investigating authority bias against imports.

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Bibliographic Info

Paper provided by The George Washington University, Institute for International Economic Policy in its series Working Papers with number 2008-17.

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Length: 34 pages
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:gwi:wpaper:2008-17

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Web page: http://www.gwu.edu/~iiep/
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Keywords: antidumping; commercial policy; trade policy; facts available;

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References

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  1. Moore, Michael O, 1992. "Rules or Politics? An Empirical Analysis of ITC Anti-dumping Decisions," Economic Inquiry, Western Economic Association International, vol. 30(3), pages 449-66, July.
  2. Bruce A. Blonigen, 2006. "Evolving discretionary practices of U.S. antidumping activity," Canadian Journal of Economics, Canadian Economics Association, vol. 39(3), pages 874-900, August.
  3. Nelson, Douglas, 2006. "The political economy of antidumping: A survey," European Journal of Political Economy, Elsevier, vol. 22(3), pages 554-590, September.
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Citations

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Cited by:
  1. Xenia Matschke & Anja Schottner, 2008. "Antidumping as Strategic Trade Policy Under Asymmetric Information," Working papers 2008-19, University of Connecticut, Department of Economics, revised Jan 2010.
  2. Moore, Michael O., 2010. "Implementing carbon tariffs : a fool's errand ?," Policy Research Working Paper Series 5359, The World Bank.
  3. Thomas J. Prusa & Robert Teh, 2010. "Protection Reduction and Diversion: PTAs and the Incidence of Antidumping Disputes," NBER Working Papers 16276, National Bureau of Economic Research, Inc.
  4. Chad P. Bown, 2010. "China's WTO Entry: Antidumping, Safeguards, and Dispute Settlement," NBER Chapters, in: China's Growing Role in World Trade, pages 281-337 National Bureau of Economic Research, Inc.
  5. Moore, Michael O., 2006. "U.S. facts-available antidumping decisions: An empirical analysis," European Journal of Political Economy, Elsevier, vol. 22(3), pages 639-652, September.

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