Antidumping Investigations and the Pass-through of Exchange Rates and Antidumping Duties, Issue 7378
National Bureau of Economic Research, 1999 - Antidumping duties - 35 pages
We present a model that shows that exchange rate pass-through is likely to be substantially altered when firms face antidumping (AD) duties and that optimal pass-through of AD duties may be up to 200 percent. We examine both pass-through issues using monthly prices across 345 U.S.- imported Canadian iron and steel products from 1989 through 1995, some of which received duties in U.S. AD cases filed in 1992. We find that exchange rate pass-through rise dramatically after products received AD duties, with no such change for closely-related products not subject to final AD duties. This result has important implications for previous studies that have pooled AD and non-AD products. We also find that pass-through of the final AD duties is 160 percent, which is consistent with our model's predictions
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200 percent 98 products administrative review process affirmative products Antidumping Duties benchmark model Blonigen Canada Canadian dollar Canadian expenditures Canadian iron Canadian producer costs carbon steel carbon steel plate column comparative static comparative static results complete time series dependent variable domestic substitute price dumping margin Economics equation estimates exchange rate changes exchange rate coefficient exchange rate pass exchange rate pass-through expenditures on steel exporting firm's F-statistic fair value Feenstra l989 final AD duties final determination foreign firms foreign market foreign price HM/CV implicit function theorem iron and steel Knetter Logarithm of U.S. marginal costs NBER Nonaffirm Sample nonaffirmative products optimal prices paper Period after final price of Canadian pricing decisions rate pass-through elasticities regressors sample of 98 second-order conditions standard ad valorem Stelco structural break subscription substantially Table threat effects trade two-tailed test U.S. dollar price U.S. domestic substitute U.S. expenditures U.S. steel USBLS USDOC USITC valorem tariff