Determinants of Anti-dumping Petition in the Chemical and Pharmaceutical Sectors in India

PurposeMergers and acquisitions (M&A) are common strategies of firms to increase its performance. Although the motives of M&A are different, the determinants are discreet. The purpose of this paper is to determine the factors affecting M&A activities in the Indian pharmaceutical sector.Design/methodology/approachUsing a balanced panel data of the pharmaceuticals sector in India, this study arrives at the determinants of M&A. The authors use regression techniques such as panel probit models, ordered probit models and matching techniques for a comparable and robust estimates for the factors related to M&A activities at firm level.FindingsThe empirical findings suggest that export intensity, import intensity, firm size and R&D intensity as the major determinants of M&A in the Indian pharmaceutical sector. In the context of acquisition, there is a riskiness associated with the any business strategy, for to which a firm may choose to finance the deal either via cash, stock or assets. This study further looks at the firm’s decision on the types of acquisitions and arrives at the determinants of such decisions. The factors such as capital intensity were found more important when acquisition by share was undertaken compared to others. The success of the M&A is observed by considering the financial performance of the firm measured in terms of the profit margin at firm level. Using the propensity score matching technique, this study concludes that M&A have a positive effect on the profit margin in the post-M&A scenario.Research limitations/implicationsThe study seeks to add to the existing literature and empirical work done in the field of M&A, by not only looking at determinants that motivate a firm to merge and/or acquire but also if the decision of the firm is reflected positively in the firm’s performance. The study concludes that export intensity is an important factor for the pharmaceutical firms in India since exports are a major proportion of firm’s total sales. Technology transfers as technology imports and R&D conducted by the firm are both very important for the drug manufacturers. Any gap in the flow of drugs to the market would hamper the growth of the firm. The growth of the pharmaceutical industry depends on the close collaboration between small R&D units that lack resources to sell their work and large business houses, both domestic and foreign affiliated that will provide them the required market. However, all comprehensive work has been done in this study to cover all aspects of M&A including the financial pathway taken by the firm yet, the study has certain limitations as it does not take into account the entry and exit of firms from the industry.Practical implicationsPolicies related to small and large firms should aim at making them export oriented and multinational affiliated to compete at the international market with corporate restructuring through M&A. This will help in firm’s growth and sharing of knowledge capital.Originality/valueNo such study is conducted that differentiate type of M&A and their determinants for the Indian pharma sector.

Purpose– The purpose of this paper is to quantify how the People’s Republic of China’s (PRC) export volume affects the anti-dumping (AD) petitions filed by its major trading partners against the country.Design/methodology/approach– Focusing on the AD petitions at the Harmonized System (HS) Code eight-digit level and the PRC’s exports at the HS two-digit level to its major trade partners during the financial crisis, we construct three instrument variables for export volume within HS two-digit level variation in the variables. These instruments – documents required, time taken and container charges incurred for goods traded across borders – represent trade costs obtained from World Bank’s Doing Business Project. We find rising exports from the PRC lead to rising AD petitions against the country.Findings– Instrumental variable estimates indicate that a 1 percentage point rise in the PRC’s export volume raises the number of AD petitions against the country by about 0.25 percentage points, and the probability of receiving AD petitions by 3.5 per cent. These estimates are about 10 times larger than that found in ordinary least square regressions.Originality/value– Their quantitative significance underlines why it is important to consider the issue of export endogeneity in the estimation, and that the failure of the current trade statistics to account for the true value-added of traded goods particularly disadvantaged the PRC given its position as the factory of the world.

This paper takes a critical look at the trends in worldwide antidumping (AD) case filings during the last two decades. We examine the motives for AD filings by countries in an attempt to identify whether economic or strategic concerns are driving the recent upsurge in AD use. We begin by providing a comprehensive overview of the data on cases initiated in the 1980 to 1998 period. We then use non-parametric methods to identify national motivations for the use of antidumping. Results show considerable support for the importance of strategic concerns in driving AD case filings. This suggests that the rise in AD activity cannot be solely explained by an increase in unfair trading practices.

This paper takes a critical look at the trends in worldwide antidumping (AD) case filings during the last two decades. We examine the motives for AD filings by countries in an attempt to identify whether economic or strategic concerns are driving the recent upsurge in AD use. We begin by providing a comprehensive overview of the data on cases initiated in the 1980 to 1998 period. We then use non-parametric methods to identify national motivations for the use of antidumping. Results show considerable support for the importance of strategic concerns in driving AD case filings. This suggests that the rise in AD activity cannot be solely explained by an increase in unfair trading practices.

This paper takes a critical look at the trends in worldwide antidumping (AD) case filings during the last two decades. We examine the motives for AD filings by countries in an attempt to identify whether economic or strategic concerns are driving the recent upsurge in AD use. We begin by providing a comprehensive overview of the data on cases initiated in the 1980 to 1998 period. We then use non-parametric methods to identify national motivations for the use of antidumping. Results show considerable support for the importance of strategic concerns in driving AD case filings. This suggests that the rise in AD activity cannot be solely explained by an increase in unfair trading practices.

This study aims at testing the effect firm's age, size and growth on its profitability based on the financial data of (22) Jordanian insurance firms that are registered in the Amman Security Exchange (ASE) during the period (2008-2017). They represent 95.2 % of insurance firms. The study relied on secondary data of insurance firms that have been published on their website and on ASE website In the study, the mean, standard deviations were used to describe the characteristics of the variables. Simple regression analysis was used to test the study's hypotheses. Simple. the skewness test of all variable is used to know if they have a normal distribution.The study shows that there is an insignificant effect of the insurance firm's age, size, and growth on its profitability. It recommends financial managers to analyze the relationship between a firm's age, size, growth, and profitability before making any decision in the fields of expanding business, renewing assets, manufacturing high-quality products and appointing new employers. In a recession period, managers should not adopt a strategy to achieve high growth in the short run, they should also reduce the size of the firm's operations. These procedures are important for these firms to maintain a balance between growth and profitability. Keywords : Firm's Age, Firm's Size, Firm's Growth, and firm's Profitability. DOI: 10.7176/EJBM/12-5-10 Publication date: February 29 th 2020

Antidumping and retaliation threats

Purpose: This study aimed at investigating the firm-level determinants of export performance (export propensity and export intensity) in Kenya’s manufacturing sector using firm-level panel data obtained from the World Bank Enterprise Surveys for the periods 2007, 2013 and 2018. Methodology: The study adopted a quantitative non-experimental research design. The Heckman Two-Stage estimation procedure was employed to jointly establish the firm-level determinants of export propensity and export intensity in Kenya’s manufacturing sector. Findings: Based on the estimation results, firm-level total factor productivity, firm size, human capital, cost of material, electricity cost and foreign ownership had positive and significant effects on firms’ export propensity while labor productivity negatively influenced export propensity. Firm age, capital intensity and research did not have significant effects on export propensity. On the other hand, export intensity was positively influenced by firm-level total factor productivity, foreign ownership, firm size, firm age, human capital and research. Labor productivity had a negative effect on firms’ export intensity. Whereas the effect of energy cost on export intensity was weakly significant at 10 percent level of significance, there was no significant effect of cost of material on export intensity. Unique Contribution to Theory, Practice and Policy: Employing the new ‘new’ trade theory, the study tested the self-selection hypothesis by analyzing the determinants of export propensity and intensity. According to the self-selection hypothesis, one of the key positive determinants of export propensity and export intensity is firm-level total factor productivity. The study findings validated the self-selection hypothesis since the results revealed firm-level total factor productivity as a positive and significant determinant of both export propensity and export intensity for Kenya’s manufacturing firms. According to the study's conclusions, the government and enterprises must focus on policies that increase firm-level total factor productivity, firm size, human capital, and research in order to improve firms' export performance.

China is the most frequent target of antidumping (AD) filings and the sixth most frequent user of antidumping duties. In this paper, we investigate the factors that influence China’s decision to retaliate using AD filings from 1995 to 2015. We consider an AD filing by China to be retaliatory if it occurs within 1 year of an initial AD filing against them and determine the factors that explain retaliatory antidumping filings. We find that higher levels of China’s country-specific imports, lower growth rates of Chinese GDP, and China’s WTO membership increase the likelihood of retaliation. In contrast, higher import growth reduces AD retaliation.

The application of the Anti-Dumping Code in international trade law is the topic of discussion in this article. Particular attention is paid to what happens when unfair trade practices are involved. The primary focus is on addressing the issue of price discrimination in international trade, which frequently brings about negative consequences for developing nations like Indonesia. The article provides a description of the phenomenon of dumping, including its impact on domestic producers, as well as anti-dumping rules within the context of the GATT and WTO. This is accomplished through theoretical studies and normative analysis. In addition, it covers the difficulties that arise when putting anti-dumping legislation into effect, as well as the remedies that can be implemented to defend domestic markets from losses that are caused by dumping. The purpose of this article is to highlight the significance of international cooperation and domestic law amendments in order to maximize the effectiveness of the Anti-Dumping Code as an instrument for protecting fair trade.

T he Collins et al. (2011) study (hereafter, CRC) examines how the competitive strategies of airlines impact the persistence of their operating earnings. The study then investigates if the persistence of earnings components, such as unit prices, costs, and productivity changes, also varies by competitive strategy. The study uses 590 observations of quarterly financial performance from 14 airline companies, over the period 1996 to 2008, to examine the impact of different competitive strategies on the persistence of profit margins and asset turnover. Two airlines’ competitive strategies are identified: network carriers and low-cost providers. The paper documents that network airlines (differentiators) have more persistent operating profit margins than low-cost carriers. Little difference is noted for total asset turnover across business models. The study also demonstrates that partitioning the change in profit margin into growth, price-recovery, and productivity components more fully explains future profit margins than current profit margin alone. The paper is a nice blend of the literatures in industrial economics and both financial and management accounting. There are two strings in the paper that are interesting to management and management accountants. One is how a firm’s competitive strategy impacts the persistence of profit margins and asset turnover ratios, which are the two key components of return on assets using the DuPont formula. The other interesting issue is the examination of how volume, price, and productivity components of profit margin changes impact earnings persistence differently across competitive strategies. As this latter part of the paper uses traditional variance analysis and productivity measures, it is particularly interesting to management accountants. Below, I discuss these two inter-related issues.

In this paper we analyze whether U.S. Anti-Dumping (AD) duties in the agricultural sector are effective in restricting trade. More specifically, does imposition of an antidumping duty restrict imports of the named commodity or is there a diversion in the supply of imports from countries named in the petition to countries not named in the antidumping petition? We find that AD duties have had a significant impact on the imports of agricultural commodities from the countries named in the petition. However, our results also indicate that, unlike the manufacturing sector in the US, there was little trade diversion towards countries not named in the AD petition. Our results indicate that AD is a plausible protectionist policy in the Agriculture sector.

Antidumping (AD) petitions are often withdrawn in favour of voluntary export restraints (VERs) and price undertakings. This paper compares these policy options in the presence of protection-jumping foreign direct investment (FDI), with special emphasis on rivalry between foreign firms. We show that a VER is less likely to induce FDI than a price undertaking or AD. As a result, by settling AD cases with VER agreements, the importing country can pursue a more protectionist policy without triggering FDI. In this sense the GATT ban on VERs following the proliferation of AD uses was a sensible decision.

Abstract. Antidumping (AD) petitions are often withdrawn in favour of voluntary export restraints (VERs) and price undertakings. This paper compares these policy options in the presence of protection‐jumping foreign direct investment (FDI), with special emphasis on rivalry between foreign firms. We show that a VER is less likely to induce FDI than a price undertaking or AD. As a result, by settling AD cases with VER agreements, the importing country can pursue a more protectionist policy without triggering FDI. In this sense the GATT ban on VERs following the proliferation of AD uses was a sensible decision.

Starting in the late 80s, Argentina implemented a series of reforms that were revolutionary in speed and scope, including trade liberalization. After implementation of these policies, a record number of antidumping (AD) petitions came forward. Under a situation of high inflation, the government reinforced its fiscal and monetary policies by announcing that it would minimize the use of such measures. The flexible disciplines of the existing domestic AD regulations faciliated this objective. Later, when the GATT/WTO-sanctioned trade remedies were implemented, the Government made a serious attempt to establish discipline by including liberal regulations, and creating special institutional arrangements. A presumption built into construction of the new mechanisms was that adhering to WTO requirements would strengthen the resistance against protection. This presumption turned out to be false. Changing circumstances including severe peso overvaluation, had significant impacts on the number and outcome of AD investigations.