a Department of Economics, University of Oregon, Eugene, OR 97403-1285, USA
b Department of Economics, MS 021, Brandeis University, PO Box 549110, Waltham, MA 02454-9110, USA
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 US AD activity from 1980 through 1998.