Split Decisions in Antidumping Cases

2010 ◽  
Vol 10 (1) ◽  
Author(s):  
Meredith A. Crowley
Keyword(s):  
Foreign Firms ◽  
Total Cost ◽  
Economic Rationale ◽  
Long Run ◽  
Foreign Countries ◽  
Imperfectly Competitive ◽  
Export Supply ◽  
Antidumping Duties ◽  
Optimal Tariff ◽  
The U.S

Abstract This paper provides a rationale for “split decisions” in antidumping cases. A split decision occurs when the U.S. government simultaneously investigates multiple countries for dumping the same product but imposes antidumping duties on only a subset of these countries. In the U.S., 76% of antidumping petitions filed between 1980 and 2004 involved two or more countries accused of dumping the same product. Among these multi-country investigations, roughly 30% concluded with a split decision in the final stage of an investigation. The model in this paper shows that selectively applying antidumping duties against foreign countries that are selling increased quantities of imports at a price below long run average total cost improves the importing country's welfare. Imperfectly competitive firms in different countries face stochastic demand and are subject to capacity constraints. As a result, foreign firms dump when they face weak demand in their own markets. In response to the shift in a foreign country's export supply, the importing country's optimal rent-shifting tariff against the foreign country with weak demand increases while its optimal tariff against other countries falls. This paper suggests an economic rationale behind the differential treatment afforded to different countries accused of dumping.

scholarly journals How Costly is Protectionism?

1992 ◽  
Vol 6 (3) ◽  
pp. 159-178 ◽  
Author(s):  
Robert C Feenstra
Keyword(s):  
North America ◽  
Free Trade ◽  
Foreign Firms ◽  
Gains From Trade ◽  
Free Trade Areas ◽  
Policy Perspective ◽  
Global Policy ◽  
Foreign Countries ◽  
The U.S

How costly is protectionism? This paper begins from a U.S. perspective, examining the costs to both the U.S. and other countries from U.S. protectionism. It emphasizes that substantial costs are imposed on foreign countries by U.S. protectionism. These costs result from the highly selective nature of protection in particular industries and against particular exporting countries. No discussion of the costs of protection would be complete without mentioning the increasing levels of investment by foreign firms within the U.S. economy. The paper next moves to a more global policy perspective. The emerging free trade areas in Europe, North America, and Asia raise the prospect of gains from trade within each region but also the possibility of global costs from protectionist actions across the regions.

Why Are Foreign Firms Listed in the U.S. Worth More?

CFA Digest ◽  
2004 ◽  
Vol 34 (3) ◽  
pp. 54-55
Author(s):  
William H. Sackley
Keyword(s):  
Foreign Firms ◽  
The U.S

Parental Leave: The Need for a National Policy to Foster Sexual Equality

1987 ◽  
Vol 13 (1) ◽  
pp. 71-104
Author(s):  
Scott A. Caplan-Cotenoff
Keyword(s):  
Child Care ◽  
Parental Leave ◽  
National Policy ◽  
Working Women ◽  
Historical Background ◽  
Sexual Equality ◽  
Pregnancy Discrimination ◽  
Foreign Countries ◽  
Leave Policy ◽  
The U.S

AbstractWorking women are without substantial protection from the ramifications of pregnancy discrimination, and the opportunities for working men to take leave from work to participate in child care are limited. Recently, private businesses have begun implementing maternity or parental leave policies to address these problems. These policies are inconsistent, however, and a national parental leave program is needed to help women attain equal access to jobs and to provide men with the opportunity to participate in child care.This Note examines the historical background of pregnancy discrimination litigation and legislation, and highlights the gaps in the protection currently afforded women. It suggests that a federal parental leave policy may expand the scope of this protection, and attempts to gain insight and draw conclusions from analogous parental leave programs in foreign countries which may be used as models for a national program in the U.S. Such a program would benefit parents, children, and society by removing some of the obstacles to sexual equality.

scholarly journals Effects of Country of Origin Labeling in the U.S. Meat Industry with Imperfectly Competitive Processors

2009 ◽  
Vol 38 (3) ◽  
pp. 406-417 ◽  
Author(s):  
Chanjin Chung ◽  
Tong Zhang ◽  
Derrell S. Peel
Keyword(s):  
Price Elasticity ◽  
Country Of Origin ◽  
Import Price ◽  
Consumer Welfare ◽  
Domestic Demand ◽  
Meat Industry ◽  
Equilibrium Displacement Model ◽  
Country Of Origin Labeling ◽  
Imperfectly Competitive ◽  
The U.S

The study examines the impacts of implementing mandatory country of origin labeling (COOL) on producer and consumer welfare in the U.S. meat industry. The equilibrium displacement model developed in this study includes twenty-nine equations representing retail-, processing-, and farm-level equilibrium conditions for the beef, pork, and chicken industries. Unlike previous studies, the model allows trade between domestic- and foreign-origin products and considers the imperfectly competitive market structure of meat processers. Empirical results show that without a significant increase in domestic meat demand, producers are not expected to benefit from the mandatory COOL implementation. Results of a sensitivity analysis indicate that consumers tend to bear more COOL costs than producers, as the own-price elasticity becomes more inelastic, and that producers’ benefits increase as the elasticity of domestic demand becomes more elastic with respect to the price of imported products. The existence of market power in upstream and downstream markets of processors negatively affects both consumer and producer surplus. One implication of our findings is that U.S. beef and pork producers’ promotion and advertising programs would be successful in expanding domestic demand when the programs make the own-price elasticity of domestic demand more inelastic and the cross-price elasticity of domestic demand more elastic with respect to import price.

scholarly journals Analysis of Import Demand for Wooden Beds in the U.S.

2010 ◽  
Vol 42 (4) ◽  
pp. 643-658 ◽  
Author(s):  
Yang Wan ◽  
Changyou Sun ◽  
Donald L. Grebner
Keyword(s):  
Trade Diversion ◽  
Import Demand ◽  
Demand System ◽  
Almost Ideal Demand System ◽  
Industrialized Countries ◽  
Depression Effect ◽  
Trade Pattern ◽  
Newly Industrialized Countries ◽  
Antidumping Duties ◽  
The U.S

The market of wooden beds in the U.S. has been flooded with imports from China and Vietnam in recent years. Static and dynamic Almost Ideal Demand System models are used to assess the import demand for wooden beds from the top seven supplying countries. The analyses reveal that the antidumping investigation on China has some temporary trade depression effect on China, but trade diversion occurs to Vietnam, Indonesia, Canada, and Brazil. The formal implementation of antidumping duties since 2005 has not shown any significant effect on the trade pattern. U.S. consumers spend more on beds from newly industrialized countries and there are moderate degrees of substitution among wooden beds from most countries.

scholarly journals Cointegration and error correction modelling of agricultural commodity trade: The case of ASEAN agricultural exports to the EU

2003 ◽  
Vol 12 (Supplement) ◽  
Author(s):  
J. NIEMI
Keyword(s):  
Error Correction ◽  
Agricultural Commodity ◽  
Commodity Trade ◽  
Price Changes ◽  
Agricultural Exports ◽  
Long Run ◽  
Export Supply ◽  
Asean Countries ◽  
The Eu ◽  
Modelling Approach

The objecti e of this study is to increase our understanding of the specification and estimation of agricultural commodity trade models as well as to provide instruments for trade policy analysis. More specifically,the aim is to build a set of dynamic,theory-based econometric models which are able to capture both short-run and long-run effects of income and price changes,and which can be used for prediction and policy simulation under alternati e assumed conditions.A relati ely unrestricted,data determined,econometric modelling approach based on the error correction mechanism is used,in order to emphasise the importance of dynamics of trade functions.Econometric models are constructed for se en agricultural commodities –cassa a,cocoa,coconut oil,palm oil,pepper, rubber,and tea –exported from the Association of Southeast Asian Nations (ASEAN)to the European Union (EU).With the aim of providing broad commodity co erage,the intent is to explore whether the chosen modelling approach is able to catch the essentials of the behavioural relationships underlying the specialised nature of each commodity market. The import demand analysis of the study examines two key features:(1)the response of EU ’s agricultural commodity imports to income and price changes,and (2)the length of time required for this response to occur.The estimations of the export demand relationships provide tests whether the exporters ’ market shares are influenced by the le el of relati e export price,and whether exports are affected by ariations in the rate of growth of imports.The export supply analysis examines the relati e influence of real price and some non-price factors in stimulating the supply of exports.The lag distribution (the shape and length of the lag)is found to be ery critical in export supply relationships,since the effects of price changes usually take a long time to work themselves through and since the transmission of the price effects can be complex.The set of dynamic econometric models estimated in the study are then used to simulate the effects different types of trade policies.More specifically,attempts are made to quantify the effects of a unilateral tariff remo al by the EU,an imposition of export subsidies and taxes by the ASEAN countries as well as exchange rate adjustments on ASEAN agricultural exports to the EU. The results suggest that concepts such as cointegration and error correction specification are well suited for the study of agricultural trade flows,which are typically non-stationary time series.The error correction specification is found to provide a good representation of the data-generating process for agricultural commodity flows from ASEAN countries to the EU.Furthermore,the study shows the importance of inspection of the time series properties and the examination of both short-and long-run adjustment when studying trade functions.The different dynamic responses are often critical to the outcomes of the types of trade policies considered.;

Chinese Direct Investment: Economics and Politics

2012 ◽  
pp. 74-79
Author(s):  
V. Tatsii ◽  
I. Tomberg
Keyword(s):  
Direct Investment ◽  
Careful Consideration ◽  
Economic Power ◽  
Specific Policy ◽  
Current Trends ◽  
Foreign Countries ◽  
High Investment ◽  
Economics And Politics ◽  
The U.S

Events in Libya did not shake China’s high investment mood towards foreign countries. At a time when Beijing's growing economic power is often perceived as a threat, and such sentiments are common in the U.S., the designing of specific policy for Chinese investors is on the agenda in many countries. The authors examine the geographical and sectoral distribution of Chinese direct investment, current trends. The question is put about careful consideration of China’s investment potential for development of mutually beneficial partnership with Russia.

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