One Lump or Two: Unitary versus Bifurcated Measures of Injury at the USITC

The most popular methodology used by the US International Trade Commission (USITC) commissioners to determine whether dumped and/or subsidized imports injure competing domestic industries has been rejected by reviewing bodies because it 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. (JEL F13) Copyright 2006, Oxford University Press.