CUMULATION AND ITC DECISION-MAKING - THE SUM OF THE PARTS IS GREATER-THAN THE WHOLE

Citation
Wl. Hansen et Tj. Prusa, CUMULATION AND ITC DECISION-MAKING - THE SUM OF THE PARTS IS GREATER-THAN THE WHOLE, Economic inquiry, 34(4), 1996, pp. 746-769
Citations number
24
Categorie Soggetti
Economics
Journal title
ISSN journal
00952583
Volume
34
Issue
4
Year of publication
1996
Pages
746 - 769
Database
ISI
SICI code
0095-2583(1996)34:4<746:CAID-T>2.0.ZU;2-H
Abstract
In 1984 Congress amended the antidumping and countervailing duty laws, mandating that the International Trade Commission (ITC) ''cumulate'' imports across countries when determining injury. We estimate that cum ulation increases the probability 4 an affirmative injury determinatio n by 20 to 30 percent and has changed the ITC's decision (from negativ e to affirmative) for about one-third of cumulated cases. We also show that the protective effect 4 cumulation increases as the number of co untries involved increases, holding import market share constant. That is, cumulated imports have a super-additive effect on ITC decision-ma king.