Finally the variables related to economic performance the va

Finally, the variables related to economic performance: the variable PCM, the profit margin, exerts a positive effect on the likelihood of anti-dumping in the pooled logit model of the basic specification, and in all specifications with interactions, with statistical significance of 10% and 5%, with the exception of regressions 03, 04 and 12. Thus, this result suggests that industries with higher profit margins may have more capacity to influence the decision for administered protection. This outcome confronts the alleged claim of injury suffered by domestic industries due to dumping, which, among other consequences, causes a decrease in profit margins as a result of predatory LDN193189 Hydrochloride from imported goods. Another important argument is the fact that this variable may also reflect market power across sectors: higher profit sectors are more apt to persuade policymakers. To clarify the market power hypothesis, PCM is tested interacting with the concentration levels, with the variable PCM*CONC although it proves to exert no statistical significant effect. In summary, results expressing economic performance do require some consideration regarding the causality and endogeneity of the explanatory variables. I am looking at broad sectors with highly aggregate data, whereas AD duties are imposed on specific products. Hence, it is arguable if an imposition of an AD would be able to increase markups, or the level of productivity and sectorial investments, in a given sector. For instance, PCM attempts to show the effects of profits on the probability of receiving the duty, comparing across sectors. However, the historical evidence in Brazil indicates that some products have been subject to AD duties since the early 1990s, after tariff reforms. For this reason, the continuity of this trade policy may impact the performance of the industries, especially if one considers the degree of concentration of petitioning firms. Having mentioned that, further research should use an instrumental variables methodology to disentangle the possible reverse causality effects.
Conclusion This work proposed an explanation for the determinants of AD enforcement in Brazil based on sector indicators. Studies on the Brazilian experience are relatively scarce and there is great emphasis on macroeconomic explanations in the international literature. This work applied explanations from the political economy of protection, which emphasize the importance of oligopolistic structures in domestic and international markets as determinants of the likelihood of petitioning and receiving trade defense measures. Results support Antitermination protein labor content and productivity decrease the propensity of receiving protection, while the structure of foreign trade (import volume and tariff level), factor content (natural resource intensity) and economic performance (investment intensity) influence the probability of an AD duty most. Sectorial markups (profits over costs) also exert positive effects, but these results should be taken cautiously, suggesting that alternative econometric methodologies and explanatory variables to account for the degree of concentration/market power of sectors should be considered in future studies.
Introduction The global crisis of 2008 is a milestone in Brazil\'s recent history. In recent decades, the economic policy implemented in Brazil in moments of crisis had generally been pro-cyclical. The historically high foreign vulnerability forced the increase of the basic interest rate to prevent capital flight, generally counterbalanced with greater fiscal austerity – in other terms, cutting public expenditure (Barbosa and Souza, 2010). Given the new macro-structural conditions of the country and the present economic orientation, the response to the crisis was countercyclical (BNDES, 2009), especially from the point of view of tax policy, following the international response bashfully (CEPAL, 2009). All around the world, State intervention was perceived as an erroneous mechanism that lacked prescriptions from neo-liberalism.