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Political Influence in a New Anti-Dumping Regime: Evidence from Mexico

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  • Francois, Joseph
  • Niels, Gunnar

Abstract

We examine the role of political factors in Mexico’s anti-dumping regime, considering both the characteristics of target countries subject to anti-dumping duties and industry-specific factors for sectors receiving protection. Our results are broadly consistent with the recent theoretical literature on endogenous protection, in terms of both the political costs and the political benefits of providing protection. They are also in line with the existing empirical literature on anti-dumping, which is focused primarily on the experience of the US and the EU. Our results also suggest that WTO Membership of trading partners increases the political costs of supplying administered protection.

Suggested Citation

  • Francois, Joseph & Niels, Gunnar, 2004. "Political Influence in a New Anti-Dumping Regime: Evidence from Mexico," CEPR Discussion Papers 4297, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:4297
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    References listed on IDEAS

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    9. Mayer, Wolfgang, 1984. "Endogenous Tariff Formation," American Economic Review, American Economic Association, vol. 74(5), pages 970-985, December.
    10. Maurizio Zanardi, 2002. "Antidumping: What are the Numbers?," Working Papers 2002_15, Business School - Economics, University of Glasgow.
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    12. Gene M. Grossman & Elhanan Helpman, 1996. "Electoral Competition and Special Interest Politics," Review of Economic Studies, Oxford University Press, vol. 63(2), pages 265-286.
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    15. Tharakan, P. K. M. & Waelbroeck, J., 1994. "Antidumping and countervailing duty decisions in the E.C. and in the U.S.: An experiment in comparative political economy," European Economic Review, Elsevier, vol. 38(1), pages 171-193, January.
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    Citations

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    Cited by:

    1. Chad P. Bown, 2008. "The Wto And Antidumping In Developing Countries," Economics and Politics, Wiley Blackwell, vol. 20(2), pages 255-288, June.
    2. Baomin Dong, 2013. "Cost-Based Anti-dumping as a Repeated Game," The Economic Record, The Economic Society of Australia, vol. 89, pages 95-105, June.
    3. Robert M. Feinberg & Kara M. Reynolds, 2016. "How Do Countries Respond to Antidumping Filings? Dispute Settlement and Retaliatory Antidumping," Working Papers 2016-04, American University, Department of Economics.
    4. Gunnar Niels & Joseph Francois, 2006. "Business Cycles, the Exchange Rate, and Demand for Antidumping Protection in Mexico," Review of Development Economics, Wiley Blackwell, vol. 10(3), pages 388-399, August.
    5. Bown, Chad P., 2006. "The World Trade Organization and antidumping in developing countries," Policy Research Working Paper Series 4014, The World Bank.
    6. Bown, Chad P. & Crowley, Meredith A., 2006. "Policy externalities: How US antidumping affects Japanese exports to the EU," European Journal of Political Economy, Elsevier, vol. 22(3), pages 696-714, September.
    7. Martin, Alberto & Vergote, Wouter, 2008. "On the role of retaliation in trade agreements," Journal of International Economics, Elsevier, vol. 76(1), pages 61-77, September.
    8. Carolyn L. Evans & Shane M. Sherlund, 2011. "Are Antidumping Duties for Sale? Case-Level Evidence on the Grossman-Helpman Protection for Sale Model," Southern Economic Journal, Southern Economic Association, vol. 78(2), pages 330-357, October.

    More about this item

    Keywords

    anti-dumping; endogenous import protection; endogenous tariffs; mexico; political economy of trade policy;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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