<b>Do Unfairly Traded Imports Injure Domestic Industries?</b>

Abstract

There is a widespread popular belief that American industry is being destroyed by unfairly traded imports, that is, those that are subsidized or dumped. This claim is tested with data (where available) from all Þnal US government countervailing duty and antidumping duty investigations between 1980 and 1988. Using a computable partial equilibrium model, upper bounds of the impact of unfairly traded imports on the revenue of competing domestic industries are computed. It is found that for most industries the effect of unfairly traded imports is minor.