Antidumping Procedures and Macroeconomic Factors: A Comparison between the United States and the European Union

This paper examines the relationship between antidumping filings and macroeconomic factors in the US and the EU. A highly dispersed distribution of the number of openings of antidumping proceduresis confirmed with an over-dispersion test, which leads us to estimate a negative binomial rather than a Poisson model. Results of this estimation suggest that a real appreciation of the filing country‟s currency significantly increases the number of openings of antidumping inquiries both in the US and the EU. Fluctuations in the level of economic activity also influence antidumping filings in the US significantly: as one would expect, real GDP growth is negatively related to filings. However, we could not establish such a relationship in the EU. Lastly, increases in the import penetration rate appear to significantly increase antidumping filings in the US. Surprisingly, this relationship turns out to be the inverse in Europe. The particular time period selected assess the damage from dumping has a significant impact on our findings.