forthcoming, Journal of International Economics

Antidumping and Retaliation Threats



 

Bruce A. Blonigen
Chad P. Bown
University of Oregon and NBER
Brandeis University

 

Abstract

       We propose and test two ways in which retaliation threats may dampen the antidumping (AD) activity we observe.  First, the threat of retaliatory AD actions may make a domestic industry less likely to name a foreign import source in an AD petition.  Second, the prospect of a GATT/WTO trade dispute may make government agencies less likely to rule positive in their AD decision. Using a nested logit framework, we find evidence that both retaliation threats substantially affect U.S. AD activity from 1980 through 1998.