One Lump or Two: Unitary Versus Bifurcated Measures of Injury at the Usitc

FTC Bureau of Economics Working Paper No. 282

36 Pages Posted: 14 Apr 2006

See all articles by Kenneth H. Kelly

Kenneth H. Kelly

Federal Trade Commission

Morris E. Morkre

affiliation not provided to SSRN

Date Written: March 2006

Abstract

The most popular methodology used by the U.S. International Trade Commission (USITC) from 1989 through 1994 to determine whether unfairly traded imports injure competing domestic industries was known as the bifurcated approach. Injury determinations based on this approach have been rejected by reviewing bodies because the methodology does not distinguish injury caused by unfairly traded imports from other demand or supply changes. We estimate injury to the domestic industry due to changes in unfairly traded import price and to other causes for 44 USITC dumping and/or subsidy investigations. Change in unfairly traded import price was typically not the most important cause of injury to the domestic industry.

Keywords: unfair, injury, unilateral, bifurcated, USITC, dumping, subsidy

JEL Classification: F13

Suggested Citation

Kelly, Kenneth H. and Morkre, Morris E., One Lump or Two: Unitary Versus Bifurcated Measures of Injury at the Usitc (March 2006). FTC Bureau of Economics Working Paper No. 282, Available at SSRN: https://ssrn.com/abstract=890761 or http://dx.doi.org/10.2139/ssrn.890761

Kenneth H. Kelly (Contact Author)

Federal Trade Commission ( email )

600 Pennsylvania Ave., NW
Washington, DC 20580
United States

Morris E. Morkre

affiliation not provided to SSRN

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