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Trade Protection and Market Power: Evidence from US Antidumping and Countervailing duties

Author

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  • Laura ROVEGNO

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

This paper uses a long panel of US 4-digit industries to analyse the impact of US Antidumping (AD) and Countervailing duties (CVD) on domestic producers' price-cost margins (PCM). In the analysis I account for selection bias in the imposition of AD/CVD as well as the intensity of the protection granted. I find evidence of a positive effect of AD/CVD on PCM. However, the point estimates are small suggesting that whilst the effects of these policies on the market of the products directly affected may be important, their sector level effects are modest.

Suggested Citation

  • Laura ROVEGNO, 2010. "Trade Protection and Market Power: Evidence from US Antidumping and Countervailing duties," LIDAM Discussion Papers IRES 2010043, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvir:2010043
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    File URL: http://sites.uclouvain.be/econ/DP/IRES/2010043.pdf
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    More about this item

    Keywords

    Antidumping; Countervailing duties; Import tariffs; Markup; Price-cost margin; Trade diversion; Competition;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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