Antidumping and Plant Closure
As an indicator of 'material injury' in antidumping petitions, companies often claim plant closings have been caused by unfairly-traded imports or threaten plant closings if no relief is provided. This paper analyzes a sample of 91 companies involved in US antidumping proceedings in the 2002 to 2005 period to examine the determinants of plant closing activity with particular emphasis on the role of the antidumping process in the timing of plant closing announcements. We find that larger firms and firms in declining sectors are more likely to close plants, and that the prize of Byrd Amendment funds may help keep plants in operation (especially for smaller firms for whom these funds are likely to be more important). However, there does not appear to be a consistent and significant relationship between antidumping petitions and the timing of plant closings.
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Volume (Year): 14 (2007)
Issue (Month): 1 ()
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