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Alternative Approach to Causation Analysis in Trade Remedy Investigations: ‘Cost of Production’ Test

In: The Legal and Economic Analysis of the WTO/FTA System

Author

Listed:
  • Dukgeun AHN
  • William J. MOON

Abstract

Causation requirement in trade remedy investigations has produced significant controversy in terms of legal interpretation and economic analysis. Deficient treaty texts and confusing legal ruling have exacerbated practical difficulty for investigating authorities to ensure World Trade Organization (WTO) consistency. Various analytical models that were proposed on the basis of more articulated economics often turn out to be too complicated to apply in broader cases or critically contingent on data availability. We suggest an alternative approach that utilizes firm production costs to complement the previous models.

Suggested Citation

  • Dukgeun AHN & William J. MOON, 2016. "Alternative Approach to Causation Analysis in Trade Remedy Investigations: ‘Cost of Production’ Test," World Scientific Book Chapters, in: The Legal and Economic Analysis of the WTO/FTA System, chapter 3, pages 71-100, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814704359_0003
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    More about this item

    Keywords

    World Trade Organization; Trade Remedy; Dispute Settlement; Free Trade Agreement;
    All these keywords.

    JEL classification:

    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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