DP3981 Business Cycles, the Current Account and Administered Protection in Mexico
|Author(s):||Joseph Francois, Gunnar Niels|
|Publication Date:||July 2003|
|Programme Areas:||International Trade and Regional Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=3981|
Antidumping actions in the United States and EU are known to be linked to macroeconomic conditions. In part, this is because positive injury findings may be easier to make in a downturn. We explore the evidence for Mexico, one of the main ?new? antidumping-using countries. Injury determination is also critical in Mexico?s antidumping policy, as a majority of unsuccessful complaints have been rejected because of negative injury findings rather than negative findings of dumping. Working with data from 1987 through 2000, we provide evidence for a relationship between macro-economic factors and antidumping complaints, including current account and exchange rate movements, and both local and global general macroeconomic conditions.