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Determinants of Anti-dumping Petition in the Chemical and Pharmaceutical Sectors in India

Author

Listed:
  • Shreya Anurakti
  • Vartika Arora
  • K. Narayanan

Abstract

The study examines the factors that drive a firm to seek protection against unfair trade practices through anti-dumping (AD) mechanisms. By focusing on AD cases initiated in the chemical and pharmaceutical allied sectors, taken from the Directorate General of Trade Remedies (DGTR) website, we have identified 45 petitioners. The empirical strategy involves the construction of an unbalanced panel from 1995 to 2019, consisting of various firm-level and industrial-level characteristics such as GDP growth rate, firm age, firm size, profitability, research and development (R&D) intensity, export intensity and market concentration. We have also examined the firm’s past experience with AD activities and its impact on its probability of filing a new AD petition. The econometric analysis uses the binary choice Probit model (random effects). The findings reveal that firms during lower economic activities are more likely to file AD petitions. Lesser concentrated markets are more likely to seek AD protection. In addition to this, firms experiencing a decline in their profit margins have a higher likelihood of filing AD petitions. Notably, large firms are found to exhibit a greater likelihood of filing AD petitions. Lastly, the econometric findings suggest that firms in high R&D-intensive industries, such as the pharmaceutical sectors, are less likely to seek protectionist measures. JEL Codes: C33, F13, F14, L11, L21, L22, Y10

Suggested Citation

  • Shreya Anurakti & Vartika Arora & K. Narayanan, 2025. "Determinants of Anti-dumping Petition in the Chemical and Pharmaceutical Sectors in India," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 26(2), pages 161-189, September.
  • Handle: RePEc:sae:soueco:v:26:y:2025:i:2:p:161-189
    DOI: 10.1177/13915614251375809
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    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • Y10 - Miscellaneous Categories - - Data: Tables and Charts - - - Data: Tables and Charts

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