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What Is Antidumping Policy Really About?

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  • Niels, Gunnar
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    Abstract

    Dumping is whatever you can get the government to act against under the antidumping law. J. Michael Finger (1993). Antidumping policy has become one of the most important instruments for protection in the international trade system, but at the same time it is the subject of an intense, though rather chaotic, debate. This paper provides an overview of the antidumping literature and the current issues. First it describes the origins of antidumping policy and provides some basic statistics on its current use drawn from several empirical studies. Next the paper discusses the economic foundations of antidumping law by examining the traditional and modern theories of dumping, as well as the industrial organization literature on price discrimination and predatory pricing. It is demonstrated that those economic foundations are weak. The paper also considers the fairness rationales for antidumping policy. Finally, it addresses the criticisms of antidumping laws, in particular in the context of the current antidumping versus competition policy debate, and discusses a variety of proposals for reform that have been made. The paper shows that the 1997 "cease fire" agreement between Canada and Chile is a promising approach toward reform of antidumping policy. Copyright 2000 by Blackwell Publishers Ltd

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Economic Surveys.

    Volume (Year): 14 (2000)
    Issue (Month): 4 (September)
    Pages: 467-92

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    Handle: RePEc:bla:jecsur:v:14:y:2000:i:4:p:467-92

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    Web page: http://www.blackwellpublishing.com/journal.asp?ref=0950-0804

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    Cited by:
    1. Zanardi, M., 2005. "Antidumping: A Problem in International Trade," Discussion Paper 2005-85, Tilburg University, Center for Economic Research.
    2. Miyagiwa, Kaz & Ohno, Yuka, 2007. "Dumping as a signal of innovation," Journal of International Economics, Elsevier, vol. 71(1), pages 221-240, March.
    3. Ian Wooton & Maurizio Zanardi, 2002. "Trade and Competition Policy: Anti-Dumping versus Anti-trust," Working Papers 2002_6, Business School - Economics, University of Glasgow, revised Oct 2002.
    4. Wu, Shih-Jye & Chang, Yang-Ming & Chen, Hung-Yi, 2014. "Antidumping duties and price undertakings: A welfare analysis," International Review of Economics & Finance, Elsevier, vol. 29(C), pages 97-107.
    5. Rude, James & Gervais, Jean-Philippe, 2007. "Biases in calculating dumping Margins: The case of cyclical products," MPRA Paper 2745, University Library of Munich, Germany.
    6. Konings, Jozef & Vandenbussche, Hylke, 2008. "Heterogeneous responses of firms to trade protection," Journal of International Economics, Elsevier, vol. 76(2), pages 371-383, December.
    7. Kume, Honorio & Piani, Guida, 2005. "Antidumping and safeguard mechanisms : the Brazilian experience, 1988-2003," Policy Research Working Paper Series 3562, The World Bank.
    8. Cesaltina Pires & Sílvia Jorge, 2012. "Limit pricing under third-degree price discrimination," International Journal of Game Theory, Springer, vol. 41(3), pages 671-698, August.
    9. Niels, Gunnar & ten Kate, Adriaan, 2006. "Antidumping policy in developing countries: Safety valve or obstacle to free trade?," European Journal of Political Economy, Elsevier, vol. 22(3), pages 618-638, September.

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