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Abstract:
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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. |