Attribution of injury in the shrimp antidumping case: A simultaneous equations approach

Abstract

We apply a simultaneous equations framework, similar to that of Prusa and Sharp (2001), to the recent shrimp antidumping investigation in order to determine how much injury to the domestic industry—proxied by deterioration in domestic shrimp prices—is attributable to subject imports versus other market factors. We construct an econometric model then estimated with three-stage least squares (3SLS). We then apply the movements of each explanatory variable over the period of investigation (POI) to its respective coefficient in order to determine how much injury is attributable to that particular market factor. We find that subject and non-subject imports were essentially equal causes of injury to the domestic industry.3SLS