Exchange Rates and "Unfair Trade"

Feinberg, Robert M.

doi:10.2307/1928116

“…They are all statistically significant at the 1% level. Clearly, the aggregate filing data suggest that AD filings increase substantially when the filing country currency strengthens in real terms, which contrasts with Feinberg's (1989) result that U.S.…”

Section: Annual Data On Aggregate Filingsmentioning

confidence: 67%

Macroeconomic Factors and Antidumping Filings: Evidence from Four Countries

Knetter

¹

,

Prusa

²

2000

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractThis paper examines the relationship between antidumping filings and macroeconomic factors. We show that real exchange rate fluctuations affect the two criteria for dumping in opposite ways, making the overall effect on filings ambiguous in theory. Interestingly, no such ambiguity is evidenced in the data. Examining the filing patterns of the four major users of AD law during the 1980-98 period we find that real exchange rates and domestic real GDP growth both have statistically significant impacts on filings. Bilateral filing data indicate that a one-standard deviation real appreciation of the domestic currency increases filings by 33% while a one-standard deviation fall in domestic real GDP increases filings by 23%.

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“…2 The extensive research literature explaining the determinants of TTBs by high income economies is surveyed by Blonigen and Prusa (2003). 3 Bown and Crowley (2012) is most closely related to a prior literature examining antidumping use by the United States and a handful of other high income countries on data from the 1980s and 1990s, including Knetter and Prusa (2003) and Feinberg (1989). Another related paper is Crowley (2011), which is the first paper that we are aware of that highlights the channel of policy-imposing economies using country-specific bilateral import restrictions against trading partners that were experiencing negative growth shocks at home.…”

Section: Introductionmentioning

confidence: 84%

Emerging economies, trade policy, and macroeconomic shocks

Bown

¹

,

Crowley

²

2014

Journal of Development Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis paper estimates the impact of macroeconomic shocks on the trade policies of thirteen major emerging economies over 1989-2010; by 2010, these WTO member countries collectively accounted for 21 percent of world merchandise imports and 22 percent of world GDP. We examine determinants of carefully constructed, bilateral measures of new import protection imposed at the extensive margin. New import restrictions on products arise through the temporary trade barriers (TTBs) -antidumping, safeguards, and countervailing duties -that have become some of the most important time-varying trade policies in use. Our approach explicitly addresses changes to the institutional environment facing these emerging economies as they joined the WTO and promised to restrain other trade policies by keeping applied import tariffs below specified maximum levels. After controlling for this phenomenon, bilateral real exchange rate fluctuations, and potential differences across exchange rate regimes, we find general evidence of a counter-cyclical relationship between macroeconomic shocks and new import protection through TTBs. Furthermore, for the subset of major G20 emerging economies, the trade policy responsiveness coinciding with the onset of the WTO in 1995 through 2008 suggests a significant change relative to the pre-WTO period; i.e., import protection through these policy instruments became more countercyclical over time. Finally, we document evidence on potential changes to the channels through which macroeconomic shocks affect emerging economy new import protection coinciding with the timing of the Great Recession. JEL No. F13

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“…Exchange rate swings may also matter in antidumping cases by inducing pricing-to-market behaviour (Feinberg, 1989). Pricing to market occurs when firms do not pass through nominal exchange rate swings into their export prices.…”

mentioning

confidence: 99%

Macroeconomic Determinants of Contingent Protection: The Case of the European Union

Becker

¹

,

Theuringer

²

2001

Zeitschrift Für Wirtschaftspolitik

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may Abstract:Contingent Protection has grown to become an important trade restricting device. In the European Union, protection instruments like antidumping are used extensively. This paper analyses whether macroeconomic pressures may contribute to explain the variations in the intensity of antidumping protectionism in the EU. The empirical analysis uses count data models, applying various specification tests to derive the most appropriate specification. Our results suggest that the filing activity is inversely related to the macroeconomic conditions. Moreover, they confirm existing evidence for the US suggesting that domestic macroeconomic pressures are a more important determinant of contingent protection policy than external pressures. JEL Classification: F13, F4

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Exchange Rates and "Unfair Trade"

Cited by 83 publications

References 4 publications

Macroeconomic Factors and Antidumping Filings: Evidence from Four Countries

Macroeconomic Factors and Antidumping Filings: Evidence from Four Countries

Emerging economies, trade policy, and macroeconomic shocks

Macroeconomic Determinants of Contingent Protection: The Case of the European Union

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