Cumulation and ITC decision-making: The sum of the parts is greater than the whole

Wendy L. Hansen, Thomas J. Prusa

Research output: Contribution to journalArticlepeer-review

75 Scopus citations

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 cumulation increases the probability of an affirmative injury determination by 20 to 30 percent and has changed the ITC's decision (from negative to affirmative) for about one-third of cumulated cases. We also show that the protective effect of cumulation increases as the number of countries involved increases, holding import market share constant. That is, cumulated imports have a super-additive effect on ITC decision-making.

Original languageEnglish (US)
Pages (from-to)746-769
Number of pages24
JournalEconomic Inquiry
Volume34
Issue number4
DOIs
StatePublished - Oct 1996

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics

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