Overcoming Free Riding: A Cross Country Analysis of Firm Participation in Antidumping Petitions

Kara Reynolds

No 2009-01, Working Papers from American University, Department of Economics

Abstract: This research is one of the first attempts to investigate the proliferation of antidumping protection from the firm-level and, in particular, to study the reasons why the free-riding problem may be more or less severe in particular countries or industries. Using a panel of data on the number of firms filing antidumping petitions in 10 countries between 1995 and 2005, I study the determinants of the industry's ability to overcome the free-riding problem. I find clear evidence that more firms will participate in antidumping petitions the lower the cost of filing; these filing costs significantly decrease in such variables as the number of countries targeted at one time and the level of development of the country. There is little evidence, however, that firms perceive that the expected benefits of the petition will be higher if they choose to participate, thus alleviating the free-rider problem. A separate statistical evaluation of actual case outcomes suggests that this perception may be valid.

Keywords: antidumping; free riding (search for similar items in EconPapers)
JEL-codes: F13 (search for similar items in EconPapers)
Date: 2009-03
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https://doi.org/10.17606/cxsf-2v41 First version, 2009 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:amu:wpaper:2009-01

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