This book, first published in 1995, analyses both theoretically and
empirically the effects of a material injury clause of the type
found in the Trade Act of 1979 on the behaviour of the dumping or
subsidised foreign and import-competing domestic industries. The
insight underlying the investigation is that the existence of such
a material injury clause in an unfair trade law presents a moral
hazard for representatives of the industry because it implies that
tariff protection is more likely when the ITC perceives the injury
to the US industry to be greater. Therefore, an incentive exists
for the US industry to let itself be (or appear to be) injured
today in order to benefit from tariff protection in the future.
General
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