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Anti-dumping Initiations in Indian Manufacturing Industries

Author

Listed:
  • Sagnik Bagchi
  • Surajit Bhattacharyya
  • K. Narayanan

Abstract

Anti-dumping as a new protectionist trade policy has evolved as the popular strategy choice for the trading nations. Since the Uruguay Round of World Trade Organization (WTO) (1994), India has been a prominent user of it. This article attempts to explore the possible factors that might have triggered off 90 percent cases of anti-dumping by five major Indian manufacturing industries over the period 1997–2011. We construct a balanced panel combining data on anti-dumping initiations from the ‘Global Antidumping Database’ with trade data from the Directorate General of Commercial Intelligence and Statistics (DGCI&S)-India and United Nations Comtrade database at the Indian Trade Classification (ITC) based on Harmonized System (HS) two-digit level. Having count data , the empirical model is estimated initially through a random - effects Poisson regression model followed by a negative binomial model. The number of anti-dumping initiations in India is dependent on the value of imports, the presence of a dominant industry lobby and the retaliatory behaviour by the affected domestic firms, among some others. In fact, we find that in determining the number of anti-dumping initiations the conventional economic and foreign affairs policies take a backseat!

Suggested Citation

  • Sagnik Bagchi & Surajit Bhattacharyya & K. Narayanan, 2015. "Anti-dumping Initiations in Indian Manufacturing Industries," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 16(2), pages 278-294, September.
    • Handle: RePEc:sae:soueco:v:16:y:2015:i:2:p:278-294
    DOI: 10.1177/1391561415598462
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    References listed on IDEAS

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    1. Nisha Malhotra & Shavin Malhotra, 2008. "Liberalization and protection: antidumping duties in the Indian pharmaceutical industry," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 11(2), pages 115-122.
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    3. Sagnik Bagchi & Surajit Bhattacharyya & K. Narayanan, 2014. "Does Anti-dumping Enforcement Generate Threat?," Foreign Trade Review, , vol. 49(1), pages 31-44, February.
    4. Krupp, Corinne, 1994. "Antidumping Cases in the U.S. Chemical Industry: A Panel Data Approach," Journal of Industrial Economics, Wiley Blackwell, vol. 42(3), pages 299-311, September.
    5. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-938, July.
    6. Doreen Bekker, 2006. "The Strategic Use Of Anti‐Dumping In International Trade," South African Journal of Economics, Economic Society of South Africa, vol. 74(3), pages 501-521, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Anti-dumping; manufacturing industries; count data; Poisson model; negative binomial model;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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