Import Dynamics and Demands for Protection

Import Dynamics and Demands for Protection

What kinds of changes in foreign competition lead domestic industries to seek import protection? To address this question this paper uses detailed monthly U.S. import data to investigate changes in import composition during a 24-month window immedi...

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Bibliographic Details
Main Authors: Hillberry, Russell, McCalman, Phillip
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
ANTI-DUMPING DUTIES
AVERAGE PRICE
BENCHMARK
BUSINESS CYCLES
CAMPAIGN CONTRIBUTIONS
CARTEL
COLLECTED TARIFF
COMMERCE
COMPETITIVE MARKETS
CONSTRUCTION
CUSTOMS
CUSTOMS VALUE
DEVELOPMENT POLICY
DOMESTIC INDUSTRY
DOMESTIC MARKET
DOMESTIC PRICE
DOMESTIC PRODUCTION
DUMPING
ECONOMIC COOPERATION
ECONOMIC RESEARCH
ECONOMIC THEORY
EQUILIBRIUM
ESCAPE CLAUSE
EXCESS SUPPLY
EXCHANGE RATES
EXPENDITURE
EXPENDITURES
EXPORT DIVERSIFICATION
EXPORT SUPPLY
EXPORTS
FAIR
FINANCIAL CRISIS
FOREIGN COMPETITION
FUTURE RESEARCH
GDP
GENERAL AGREEMENT ON TARIFFS
GLOBAL TRADING
GROWTH RATE
HOME MARKET
IMPORT COMPETITION
IMPORT DATA
IMPORT PRICE
IMPORT PRICES
IMPORT PROTECTION
IMPORT RELIEF
IMPORT STATISTICS
IMPORT VALUE
IMPORT VALUES
IMPORT VOLUME
IMPORTS
INDUSTRIAL ECONOMICS
INTERNATIONAL ECONOMICS
INTERNATIONAL TRADE
INTERNATIONAL TRADE COMMISSION
IRON
MARKET CONDITIONS
MARKET SHARE
MERCHANDISE
MONOPOLY
NATIONAL ECONOMIES
NATIONAL TREATMENT
PREFERENTIAL TRADE
PREFERENTIAL TRADE AGREEMENTS
PRICE VOLATILITY
PROTECTIONISM
RECIPROCITY
RENT SEEKING
SALE
TARIFF BARRIERS
TARIFF CLASSIFICATION
TERMS OF TRADE
TRADE ACT
TRADE AGREEMENTS
TRADE BARRIERS
TRADE DATA
TRADE LIBERALIZATION
TRADE POLICY
TRADE PROTECTION
UNFAIR COMPETITION
WAREHOUSE
WORLD TRADE
WTO
Online Access:http://documents.worldbank.org/curated/en/2014/03/19189979/import-dynamics-demands-protection
http://hdl.handle.net/10986/17301
Description
Summary:What kinds of changes in foreign competition lead domestic industries to seek import protection? To address this question this paper uses detailed monthly U.S. import data to investigate changes in import composition during a 24-month window immediately preceding the filing of a petition for protection. A decomposition methodology allows a comparison of imports from two groups of countries supplying the same product: those that are named in the petition and those that are not. The same decomposition can be applied to products quite similar to the imports in question, but not subject to a petition. The results suggest that industries typically seek protection when faced with a specific pattern of shocks. First, a persistent positive relative supply shock favors imports from named countries. Second, a negative demand shock hits imports from all sources just prior to domestic industries' petition for protection. The relative supply shock is a broad one; it applies both to named commodities and to the comparison product group. The import demand shock, by contrast, is narrow, hitting only named products. The latter shock is also large: import growth over the two-year window is 15 percentage points lower in named products than in reference products, with most of this gap arising in the final two quarters before the petition. The negative import demand shock appears to be a key event in the run-up to the filing of a petition. It has been missed by previous studies using more aggregated data.

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