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Anti-dumping measures as a tool of protectionism: A mechanism design approach

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  • Leonard K. Cheng
  • Larry D. Qiu
  • Kit Pong Wong

Abstract

In this paper we explore the design of optimal incentive-compatible anti-dumping (AD) measures. When the weight given to the domestic firm's profit in the government's objective function is relatively small, it is shown that no AD duty should be imposed if the foreign firm reports its own costs, but a constant AD duty should be imposed if the domestic firm reports the foreign firm's cost. When this weight is large, in either case of reporting the AD duty is a prohibitive tariff. The optimal AD measures are modified in the presence of a GATT/WTO constraint.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 34 (2001)
Issue (Month): 3 (August)
Pages: 639-660

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Handle: RePEc:cje:issued:v:34:y:2001:i:3:p:639-660

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Cited by:
  1. Xenia Matschke & Anja Schöttner, 2009. "Antidumping as Strategic Trade Policy Under Asymmetric Information," CESifo Working Paper Series 2536, CESifo Group Munich.
  2. Matloob Piracha, 2004. "Export Subsidies and Countervailing Duties Under Asymmetric Information," Studies in Economics 0410, Department of Economics, University of Kent.
  3. 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.
  4. Huasheng Song & Hylke Vandenbussche, 2008. "Trade Policy and Innovation," LICOS Discussion Papers 20008, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  5. Qiu, Larry D., 2003. "Reply," Journal of International Economics, Elsevier, vol. 61(1), pages 247-248, October.

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