EconPapers    
Economics at your fingertips  
 

Import dynamics and demands for protection

Russell Hillberry and Phillip McCalman

Canadian Journal of Economics, 2016, vol. 49, issue 3, 1125-1152

Abstract: What kinds of changes in foreign competition lead domestic industries to seek import protection? To address this question, we use detailed monthly US import data to investigate changes in import composition during a 24-month window immediately preceding the filing of a petition for import protection. A decomposition methodology allows a comparison of imports from two groups of countries supplying the same product: those that are named in the petition and those that are not. The same decomposition can be applied to products quite similar to the imports in question, but not subject to a petition. The results suggest that industries typically seek protection when faced with a specific pattern of shocks. First, a persistent positive relative supply shock favours imports from named countries. Second, a negative demand shock hits imports from all sources just prior to domestic industries petition for protection. The relative supply shock is a broad one; it applies both to named commodities and to the comparison product group. The import demand shock, by contrast, is narrow, hitting only named products. This negative import demand shock appears to be a key event in the run-up to the filing of a petition. This latter shock has been missed by previous studies using more aggregated data.

JEL-codes: F13 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://economics.ca/cgi/xms?jab=v49n3/CJEv49n3p1125.pdf Full text (application/pdf)
Available to subscribers only. Alternative access through JSTOR and Ingenta.

Related works:
Working Paper: Import dynamics and demands for protection (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:49:y:2016:i:3:p:1125-1152

Ordering information: This journal article can be ordered from
https://economics.ca/en/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Katherine Cuff

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().

 
Page updated 2019-08-08
Handle: RePEc:cje:issued:v:49:y:2016:i:3:p:1125-1152