Working Paper: CEPR ID: DP9343
Authors: Andreea Nita; Maurizio Zanardi
Abstract: The literature on antidumping (AD) has documented various aspects of this protectionist tool. However, a peculiar feature of AD has not received much attention: these measures are endogenous to the behavior of the exporting firms, which can adjust the dumping margin by changing their export price and ask the authority to amend the AD measures accordingly. The objective of this paper is to fill part of this gap in the literature by analyzing the AD reviews conducted by the European Union for affirmative petitions initiated in 1980-2009. To this end, a novel dataset of all such reviews has been assembled. Summary statistics reveal that more than a third of all petitions concluded with the imposition of AD measures are reviewed at least once before their expiration and most reviews lead to lower AD duties (still, almost 20% of the firms investigated through interim reviews see their duties increase). There are significant differences in the outcome of the reviews depending on the party requesting them (i.e., reviews lodged by European producers are less likely to lead to lower duties). These conclusions are confirmed by the econometric analysis, which also shows that Chinese firms see their duties reduced significantly less than those of firms from other countries.
Keywords: Antidumping; Antidumping reviews
JEL Codes: F13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Initiation of antidumping (AD) reviews (F18) | Reduction in AD duties (H25) |
| Initial level of AD duties (Y20) | Magnitude of changes in duties (F29) |
| Initiation of reviews by European producers (L66) | Increase in duties (H29) |
| Initiation of reviews by foreign producers (F18) | Decrease in duties (H69) |
| Chinese firms reviewed less frequently (F23) | Less favorable outcomes in duty reductions (F69) |
| Lesser duty rule (K13) | Determining final duty levels post-review (F13) |