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Cumulation and ITC Decision-Making: The Sum of the Parts is Greater Than the Whole

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Author Info
Wendy L. Hansen () (University of New Mexico)
Thomas J. Prusa () (Rutgers University)
Abstract

In 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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Publisher Info
Paper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 199422.

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Date of creation: 12 Nov 1996
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Handle: RePEc:rut:rutres:199422

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Related research
Keywords: antidumping; cumulation; ITC; Title VII; trade policy;

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Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law

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  1. Poonam Gupta & Arvind Panagariya, 2006. "Injury Investigations in Antidumping and the Super-Additivity Effect: A Theoretical Explanation," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(1), pages 151-164, April. [Downloadable!] (restricted)
    Other versions:
  2. Nandana Baruah, 2006. "Antidumping Duties as a Measure of Contingent Protection: an Analysis of Indian Experience," Working Papers id:526, esocialsciences.com. [Downloadable!]
  3. Arvind Panagariya & Poonam Gupta, 2003. "Injury Investigations in Anti-dumping and the Super-Additivity," International Trade 0308008, EconWPA. [Downloadable!]
  4. Bruce Blonigen & Thomas Prusa, 2003. "The Cost of Antidumping: the Devil is in the Details," Journal of Policy Reform, Taylor and Francis Journals, vol. 6(4), pages 233-245, January. [Downloadable!] (restricted)
  5. Chad Bown & Meredith Crowley, 2004. "China's export growth and U.S. trade policy," Working Paper Series WP-04-28, Federal Reserve Bank of Chicago. [Downloadable!]
  6. Jai S. Mah, 2003. "Countervailing Duties in the USA," Working papers 2003-45, University of Connecticut, Department of Economics. [Downloadable!]
  7. 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. [Downloadable!]
  8. Meredith A. Crowley, 2001. "Antidumping policy under imperfect competition," Working Paper Series WP-01-21, Federal Reserve Bank of Chicago. [Downloadable!]
  9. Rude, James & Gervais, Jean-Philippe, 2007. "Biases in calculating dumping Margins: The case of cyclical products," MPRA Paper 2745, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  10. Douglas A. Irwin, 2005. "The Rise of U.S. Antidumping Activity in Historical Perspective," IMF Working Papers 05/31, International Monetary Fund. [Downloadable!]
    Other versions:
  11. Aradhna Aggarwal, 2008. "Anti-dumping Protection: Who Gets It? An Exploratory Analysis of Anti-dumping Use in the Most Active User Countries," Working Papers id:1374, esocialsciences.com. [Downloadable!]
  12. Bown, Chad P., 2005. "Trade remedies and World Trade Organization dispute settlement : Why are so few challenged?," Policy Research Working Paper Series 3540, The World Bank. [Downloadable!]
  13. Meredith Crowley, 2007. "Cyclical dumping and U.S. antidumping protection: 1980-2001," Working Paper Series WP-07-21, Federal Reserve Bank of Chicago. [Downloadable!]
  14. Benjamin Liebman, 2004. "ITC voting behavior on sunset reviews," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 140(3), pages 446-475, September. [Downloadable!] (restricted)
  15. P. Tharakan & David Greenaway & Joe Tharakan, 1998. "Cumulation and injury determination of the European community in antidumping cases," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 134(2), pages 320-339, June. [Downloadable!] (restricted)
    Other versions:
  16. Bruce A. Blonigen & Robert C. Feenstra, 1996. "Protectionist Threats and Foreign Direct Investment," NBER Working Papers 5475, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  17. Tianshu Chu & Thomas J. Prusa, 2004. "The Reasons for and the Impact of Antidumping Protection: The Case of People's Republic of China," Economics Study Area Working Papers 69, East-West Center, Economics Study Area. [Downloadable!]
  18. Douglas Irwin, 2004. "The Rise of U.S. Antidumping Actions in Historical Perspective," NBER Working Papers 10582, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  19. Chad P. Bown, 2007. "China's WTO Entry: Antidumping, Safeguards, and Dispute Settlement," NBER Working Papers 13349, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  20. Meredith A. Crowley, 2004. "Antidumping Policy Under Imperfect Competition: Theory and Evidence," Econometric Society 2004 North American Summer Meetings 443, Econometric Society. [Downloadable!]
  21. Thomas J. Prusa, 1998. "Cumulation and antidumping: A challenge to competition," Departmental Working Papers 199814, Rutgers University, Department of Economics. [Downloadable!]
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