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The Economics and Politics of Trade Policy: An Empirical Analysis of ITC Decision Making

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

We study the determinants of trade policy decisions focusing specifically on antidumping and countervailing duty statutes administered by the International Trade Commission (ITC). Using detailed industry, import, and political pressure data we model ITC decision making, weighing the relative impact of economic and political factors in predicting policy outcomes. We find the ITC's decision making is significantly influenced by both economic and political factors. However, because an industry has much greater ability to create political pressure than induce economic injury, our results highlight the strategic importance of oversight representation and PAC contributions in an industry's bid for protection.

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Paper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 199621.

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Date of creation: 08 Nov 1996
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Handle: RePEc:rut:rutres:199621

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Related research
Keywords: ITC;

Find related papers by JEL classification:
F1 - International Economics - - Trade

References listed on IDEAS
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  1. Robert Baldwin & Jeffrey Steagall, 1994. "An analysis of ITC decisions in antidumping, countervailing duty and safeguard cases," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(2), pages 290-308, June. [Downloadable!] (restricted)
  2. Silberman, Jonathan I & Durden, Garey C, 1976. "Determining Legislative Preferences on the Minimum Wage: An Economic Approach," Journal of Political Economy, University of Chicago Press, vol. 84(2), pages 317-29, April. [Downloadable!] (restricted)
  3. 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. [Downloadable!] (restricted)
  4. Weingast, Barry R & Moran, Mark J, 1983. "Bureaucratic Discretion or Congressional Control? Regulatory Policymaking by the Federal Trade Commission," Journal of Political Economy, University of Chicago Press, vol. 91(5), pages 765-800, October. [Downloadable!] (restricted)
  5. Chappell, Henry W, Jr, 1982. "Campaign Contributions and Congressional Voting: A Simultaneous Probit-Tobit Model," The Review of Economics and Statistics, MIT Press, vol. 64(1), pages 77-83, February. [Downloadable!] (restricted)
  6. Hoekman, B.M. & Leidy, M.P., 1989. "Dumping, Antidumping, And Emergency Protection," Working Papers 246, Research Seminar in International Economics, University of Michigan.
  7. repec:fth:michin:246 is not listed on IDEAS
  8. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring. [Downloadable!] (restricted)
  9. Becker, Gary S, 1983. "A Theory of Competition among Pressure Groups for Political Influence," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 371-400, August. [Downloadable!] (restricted)
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