Measuring Industry Specific Protection: Antidumping in the United States

Abstract

This paper provides estimates of the trade impacts of U.S. antidumping law and the determinants of suit filing activity from 1980-1985. We study three possible channels through which the threat or mere possibility of antidumping duties can restrict trade which we believe, when combined with the direct effects of duties, capture most of the trade effects of antidumping law. We refer to these three non- duty effects as the investigation effect, the suspension effect, and the withdrawal effect. Investigation effects occur when an antidumping investigation takes place; suspension effects occur under so-called 'suspension agreements'; and withdrawal effects occur after a petition is simply withdrawn without a final determination. We find substantial trade restrictions associated with the first two effects, but not with the third. Finally, we find evidence suggesting that some firms initiate antidumping procedures for the trade restricting investigation effects alone.