Free Riders Among the Rent-Seekers: A Model of Firm Participation in Antidumping Petitions
AbstractThis research expands upon the current theoretical literature on the political economy of trade policy by empirically estimating the degree of rent-seeking in the presence of free riding. The results provide strong evidence that the level of trade protection awarded to industries is significantly influenced by political factors, including the number of firms that actively participate in a collective action. However, fewer firms participate in collective actions in industries characterized by either a large number of firms or high concentration levels because the free rider problem becomes more severe. I estimate a model of firm participation in antidumping petitions using a panel of U.S. petition filings and outcomes between 1980 and 1996. After estimating the parameters of the model, I simulate the impact of specific changes in U.S. antidumping law and find that even small changes in the private returns to participating in this rent-seeking activity will dramatically change the level of trade protection in the economy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series International Trade with number 0404009.
Length: 35 pages
Date of creation: 29 Apr 2004
Date of revision:
Note: Type of Document - pdf; pages: 35
Contact details of provider:
Web page: http://188.8.131.52
antidumping; rent-seeking; free riding; collective actions; trade policy;
Find related papers by JEL classification:
- F1 - International Economics - - Trade
- F2 - International Economics - - International Factor Movements and International Business
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eric J. Bartelsman & Wayne Gray, 1996. "The NBER Manufacturing Productivity Database," NBER Technical Working Papers 0205, National Bureau of Economic Research, Inc.
- Berry, Steven T, 1992. "Estimation of a Model of Entry in the Airline Industry," Econometrica, Econometric Society, vol. 60(4), pages 889-917, July.
- Kara M. Olson, 2004.
"Subsidizing Rent-Seeking: Antidumping Protection and the Byrd Amendment,"
- Reynolds, Kara M., 2006. "Subsidizing rent-seeking: Antidumping protection and the Byrd Amendment," Journal of International Economics, Elsevier, vol. 70(2), pages 490-502, December.
- 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.
- 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.
- Nelson, Douglas, 2006. "The political economy of antidumping: A survey," European Journal of Political Economy, Elsevier, vol. 22(3), pages 554-590, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.