Business Cycles, the Current Account and Administered Protection in Mexico

Working Paper: CEPR ID: DP3981

Authors: Joseph Francois; Gunnar Niels

Abstract: Antidumping actions in the United States and EU are known to be linked to macroeconomic conditions. In part, this is because positive injury findings may be easier to make in a downturn. We explore the evidence for Mexico, one of the main ?new? antidumping-using countries. Injury determination is also critical in Mexico?s antidumping policy, as a majority of unsuccessful complaints have been rejected because of negative injury findings rather than negative findings of dumping. Working with data from 1987 through 2000, we provide evidence for a relationship between macro-economic factors and antidumping complaints, including current account and exchange rate movements, and both local and global general macroeconomic conditions.

Keywords: No keywords provided

JEL Codes: F10; F13


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
real exchange rate appreciates (F31)increase in antidumping complaints (F18)
worsening of current account balance (F32)increase in antidumping complaints (F18)
slowdown in domestic manufacturing output (O14)increase in antidumping complaints (F18)
high number of complaints in previous periods (L97)decrease in new complaints in subsequent periods (C41)

Back to index