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Cumulation and ITC Decision-Making: The Sum of the Parts is Greater Than the Whole

Author

Listed:
  • Wendy L. Hansen

    (University of New Mexico)

  • Thomas J. Prusa

    (Rutgers University)

Abstract

In 1984 Congress amended the antidumping and countervailing duty laws, mandating that the ITC ``cumulate'' imports across countries when determining injury. We estimate that cumulation increases the probability of an affirmative injury determination by 20 to 30 percent and has changed the ITC's decision (from negative to affirmative) for about one-third of cumulated cases. We also show that the protective effect of cumulation increases as the number of countries involved increases, holding import market share constant. That is, cumulated imports have a super-additive effect on ITC decision-making.

Suggested Citation

  • Wendy L. Hansen & Thomas J. Prusa, 1996. "Cumulation and ITC Decision-Making: The Sum of the Parts is Greater Than the Whole," Departmental Working Papers 199422, Rutgers University, Department of Economics.
  • Handle: RePEc:rut:rutres:199422
    as

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    References listed on IDEAS

    as
    1. Takacs, Wendy E, 1981. "Pressures for Protectionism: An Empirical Analysis," Economic Inquiry, Western Economic Association International, vol. 19(4), pages 687-693, October.
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    More about this item

    Keywords

    antidumping; cumulation; ITC; Title VII; trade policy;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law

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