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US Antidumping Petitions and Revealed Comparative Advantage of Shrimp Exporting Countries

Author

Listed:
  • Chia-Lin Chang

    (Department of Applied Economics Department of Finance National Chung Hsing University Taichung, Taiwan.)

  • Michael McAleer

    ( Department of Quantitative Finance National Tsing Hua University, Taiwan and Econometric Institute, Erasmus School of Economics Erasmus University Rotterdam and Tinbergen Institute, The Netherlands and Department of Quantitative Economics Complutense University of Madrid, Spain.)

  • Dang-Khoa Nguyen

    (International Master Program of Agriculture National Chung Hsing University Taichung, Taiwan.)

Abstract

The paper explores the trade competitiveness of seven major shrimp exporting countries, namely Vietnam, China, Thailand, Ecuador, India, Indonesia and Mexico, to the USA. Specifically, we investigate whether the United States (US) antidumping petitions impact upon the bilateral revealed comparative advantage (RCA) indexes for each of the seven shrimp exporting countries with the USA. Monthly data from January 2003 to December 2014 and the panel data model are used to examine the determinants of the RCA for the shrimp exporting countries. The empirical results show the shrimp exporting countries have superior competitiveness against the shrimp market in the USA. Moreover, the RCA indexes are significantly negatively influenced by shrimp prices, and are positively affected by US income per capita. However, the EMS (Early Mortality Syndrome) shrimp disease, domestic US shrimp quantity, exchange rate, and US antidumping laws are found to have no significant impacts on the RCA indexes. In terms of policy implications, the USA should try to reduce production costs of shrimp in the US market instead of imposing antidumping petitions, and the shrimp exporting countries should maintain their comparative advantage and diversify into new markets.

Suggested Citation

  • Chia-Lin Chang & Michael McAleer & Dang-Khoa Nguyen, 2016. "US Antidumping Petitions and Revealed Comparative Advantage of Shrimp Exporting Countries," Documentos de Trabajo del ICAE 2016-17, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    • Handle: RePEc:ucm:doicae:1617
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    References listed on IDEAS

    as
    1. Thomas J. Prusa, 2005. "Anti‐dumping: A Growing Problem in International Trade," The World Economy, Wiley Blackwell, vol. 28(5), pages 683-700, May.
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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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