Cumulation and ITC Decision-Making: The Sum of the Parts Is Greater Than the Whole

Wendy L Hansen and Thomas Prusa

Economic Inquiry, 1996, vol. 34, issue 4, 746-69

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. The authors 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. They 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 superadditive effect on ITC decision making. Copyright 1996 by Oxford University Press.

Date: 1996
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Working Paper: Cumulation and ITC Decision-Making: The Sum of the Parts is Greater Than the Whole (1996)
Working Paper: Cumulation and ITC Decision-Making: The Sum of the Parts is Greater thanthe Whole (1995)
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