Cumulation and ITC Decision-Making: The Sum of the Parts is Greater Than the Whole
AbstractIn 1984 Congress amended the antidumping and countervailing duty laws, mandating that the ITC ``cumulate'' imports across countries when determining injury. We estimate that cumulation increases the probability of an affirmative injury determination by 20 to 30 percent and has changed the ITC's decision (from negative to affirmative) for about one-third of cumulated cases. We also show that the protective effect of cumulation increases as the number of countries involved increases, holding import market share constant. That is, cumulated imports have a super-additive effect on ITC decision-making.
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Bibliographic InfoPaper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 199422.
Date of creation: 12 Nov 1996
Date of revision:
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antidumping; cumulation; ITC; Title VII; trade policy;
Other versions of this item:
- Hansen, Wendy L & Prusa, Thomas J, 1996. "Cumulation and ITC Decision-Making: The Sum of the Parts Is Greater Than the Whole," Economic Inquiry, Western Economic Association International, vol. 34(4), pages 746-69, October.
- Wendy L. Hansen & Thomas J. Prusa, 1995. "Cumulation and ITC Decision-Making: The Sum of the Parts is Greater thanthe Whole," NBER Working Papers 5062, National Bureau of Economic Research, Inc.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
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- Takacs, Wendy E, 1981. "Pressures for Protectionism: An Empirical Analysis," Economic Inquiry, Western Economic Association International, vol. 19(4), pages 687-93, October.
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