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Protection Reduction and Diversion: PTAs and the Incidence of Antidumping Disputes

  • Thomas J. Prusa
  • Robert Teh

We analyze whether preferential trade agreements (PTAs) affect the incidence and pattern of antidumping (AD) filings. We estimate AD provisions in PTAs have decreased the incidence of intra-PTA AD cases by 33-55% and have increased the number of AD actions against non-PTA members by 10-30%. The net effect of PTA rules on total AD filings is small. Our results are robust to alternative estimation approaches and controlling for a myriad of other PTA-related phenomena. Our results suggest a protection analogue to the "trade creation-trade diversion" impact of PTAs. PTA members are spared from AD actions but non-PTA members face even greater AD scrutiny.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16276.

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Date of creation: Aug 2010
Date of revision:
Handle: RePEc:nbr:nberwo:16276
Note: ITI
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  1. Thomas J. Prusa, 2001. "On the spread and impact of anti-dumping," Canadian Journal of Economics, Canadian Economics Association, vol. 34(3), pages 591-611, August.
  2. Caroline L. Freund & John McLaren, 1999. "On the dynamics of trade diversion: evidence from four trade blocs," International Finance Discussion Papers 637, Board of Governors of the Federal Reserve System (U.S.).
  3. Bruce A. Blonigen & Thomas J. Prusa, 2001. "Antidumping," NBER Working Papers 8398, National Bureau of Economic Research, Inc.
  4. Thomas Prusa & Michael Knetter, 2000. "Macroeconomic Factors and Antidumping Filings: Evidence from Four Countries," Departmental Working Papers 200023, Rutgers University, Department of Economics.
  5. Theo Eicher & Christian Henn & Chris Papageorgiou, 2010. "Trade Creation and Diversion Revisited: Accounting for Model Uncertainty and Natural Trading Partner Effects," Working Papers UWEC-2007-18-P, University of Washington, Department of Economics.
  6. Philippa Dee, 2006. "Multinational Corporations and Pacific Regionalism," Trade Working Papers 21836, East Asian Bureau of Economic Research.
  7. Blonigen, Bruce A. & Bown, Chad P., 2003. "Antidumping and retaliation threats," Journal of International Economics, Elsevier, vol. 60(2), pages 249-273, August.
  8. Robert Baldwin & Jeffrey Steagall, 1994. "An analysis of ITC decisions in antidumping, countervailing duty and safeguard cases," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(2), pages 290-308, June.
  9. Michael Moore & Alan Fox, 2010. "Why don’t foreign firms cooperate in US antidumping investigations? An empirical analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 145(4), pages 597-613, January.
  10. Feinberg, Robert M. & Hirsch, Barry T., 1989. "Industry rent seeking and the filing of unfair trade complaints," International Journal of Industrial Organization, Elsevier, vol. 7(3), pages 325-340.
  11. 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.
  12. Thomas J. Prusa, 2005. "Anti-dumping: A Growing Problem in International Trade," The World Economy, Wiley Blackwell, vol. 28(5), pages 683-700, 05.
  13. Feinberg, Robert M, 1989. "Exchange Rates and "Unfair Trade."," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 704-07, November.
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