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Why don’t foreign firms cooperate in US antidumping investigations? An empirical analysis

  • Michael Moore

    ()

  • Alan Fox

Foreign firms face punitive duties if they do not cooperate with the US Department of Commerce (DOC) in antidumping procedures. For example, 37% of all foreign firms involved in antidumping investigations in the US chose faced “facts available” margins for the 1995-2002 period, with average antidumping duties of 31% for cooperating foreign firms, compared to 87% for those who do not. The existing literature has focused on how DOC discretion has led to foreign firm non-cooperation. This paper instead examines individual foreign firm’s decisions about whether to cooperate during this same period. We find evidence that non-cooperation is consistent with a model of foreign firms rationally choosing not to cooperate, rather than solely as a result of investigating authority bias against imports.

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File URL: http://hdl.handle.net/10.1007/s10290-009-0035-0
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Article provided by Springer in its journal Review of World Economics.

Volume (Year): 145 (2010)
Issue (Month): 4 (January)
Pages: 597-613

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Handle: RePEc:spr:weltar:v:145:y:2010:i:4:p:597-613
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  1. Moore, Michael O, 1992. "Rules or Politics? An Empirical Analysis of ITC Anti-dumping Decisions," Economic Inquiry, Western Economic Association International, vol. 30(3), pages 449-66, July.
  2. Bruce A. Blonigen, 2003. "Evolving Discretionary Practices of U.S Antidumping Activity," NBER Working Papers 9625, National Bureau of Economic Research, Inc.
  3. Nelson, Douglas, 2006. "The political economy of antidumping: A survey," European Journal of Political Economy, Elsevier, vol. 22(3), pages 554-590, September.
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