Imposing temporary trade barriers (TTBs) as remedy actions against imports has become popular among global countries in recent decades. Many countries have employed these trade barriers to protect domestic firms from possible injury by unfair international trade. This study evaluated the main factors that influenced the implementation of TTBs in the forest products industry from 1995 to 2015 for two scenarios: a global and developing countries scenario; and a paper and non-paper products scenario. A two-step sample selection model was employed to assess the determinants of the decision to impose TTBs and the frequency to implement TTBs for the scenario of global and developing countries. From the perspective of forest products, determinants of applying TTBs on paper and non-paper products were examined with the probit regression. For the scenario of global and developing countries, the import, employment in agriculture, forest coverage rate, inflation, and GDP per capita were significant determinants. For the scenario of paper and non-paper products, variables of the forest area, imports, exports, GDP per capita, tariff rate, expenditure on education, and employment in agriculture were significant. The results show that a country with a large per capita GDP is more likely to file more TTBs against others. One implication is that countries should be cautious to impose TTBs, as it may cause the attention to shift from the inefficiencies of domestic forest firms to the unfair trade actions of exporters.
Special tariffs have been increasingly adopted to protect domestic industries from potential injury caused by unfair international trade. In this study, a multinomial logit model is employed to examine the patterns and determinants of antidumping duty investigations in the global forest products industry. From 1995 to 2015, a total of 372 relevant cases are identified. The number of firms and the inclusion of unions as a petitioner generally improve the probability of an affirmative decision. The characteristics of petition countries have shown more impacts on the decisions than those of target countries. Developing countries have initiated a larger number of antidumping duty investigations in the global forest products industry, and furthermore, they are more inclined to adopt antidumping duties than developed countries. Countries with abundant forest resources and more forest products trade are more likely to make an affirmative decision. These findings will provide helpful information to industrial firms and government agencies in dealing with the challenges of global competition. Study Implications The findings reveal that getting more stakeholders involved in an antidumping duty investigation will increase the probability of trade intervention. The economic status in petition countries is the primary determinant of the decisions from antidumping duty investigations in the global forest products industry. Developing countries not only have initiated a large number of antidumping duty investigations in the forest products industry but also have been more inclined to adopt antidumping duties. Antidumping duty investigations offer an opportunity to countries with abundant forest resources and extensive forest products trade in case of unfair international competition.
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