Quantifying Causes of Injury to U.S. Industries Competing with Unfairly Traded Imports: 1989 to 1994

Authors:
Kenneth H. Kelly and Morris E. Morkre

 

This study updates and extends the earlier 1994 BE Staff Report Effects of Unfair Imports on Domestic Industries: U.S. Antidumping and Countervailing Duty Cases, 1980 to 1988. First, it estimates the adverse effect of dumped and subsidized imports on domestic industries for 63 final cases decided by the U.S. during 1989-1994. Injury to domestic producers from unfairly traded imports is greater in 1989-1994 compared with 1980-1988. This increase is attributable in part to an increase in dumping margins. Second, the study estimates the effects of dumped and subsidized imports on workers and consumers. U.S. consumers gain at least $2.9 billion per year (1992 dollars) from dumped and subsidized imports. Consumer benefit per job lost ranges from a low of $27,000 to a high of $3.6 million. Third, the study measures how changes in demand and supply for the output of domestic industries that compete with unfairly traded imports have affected the performance of those industries. On average, a decline in demand is the single most important factor reducing output and revenue for these industries, and has a larger effect than unfairly traded imports.