Sanctuary Markets and Antidumping: An Empirical Analysis of U.S. Exporters

Michael Moore ()
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Michael Moore: Institute for International Economic Policy, George Washington University

Working Papers from The George Washington University, Institute for International Economic Policy

Abstract: Antidumping proponents in the U.S. often argue that foreign firms use profits obtained behind home market barriers to "subsidize" "unfair" pricing abroad. This paper examines this "sanctuary market" hypothesis for antidumping petitions against U.S. manufacturing exporters. Econometric results suggest that there is little evidence that U.S. manufacturing firms facing antidumping actions abroad are beneficiaries of a home market sanctuary during the 1994-2007 time period. Instead, U.S. firms in capital- intensive sectors that are successful exporters are more likely to face antidumping petitions abroad. This evidence suggests that current antidumping rules need reform so that firms not benefitting from sanctuary markers may avoid antidumping actions.

Pages: 42 pages
Date: 2013-03
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Persistent link: https://EconPapers.repec.org/RePEc:gwi:wpaper:2013-3

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