Antidumping Duty Investigations and Decisions in the Global Forest Products Industry

Abstract

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.