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

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Listed:
  • 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.

Suggested Citation

  • Leonard K. Cheng & Larry D. Qiu & Kit Pong Wong, 2001. "Anti-dumping measures as a tool of protectionism: A mechanism design approach," Canadian Journal of Economics, Canadian Economics Association, vol. 34(3), pages 639-660, August.
    • Handle: RePEc:cje:issued:v:34:y:2001:i:3:p:639-660
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    Cited by:

    1. Xenia Matschke & Anja Schöttner, 2013. "Antidumping as Strategic Trade Policy under Asymmetric Information," Southern Economic Journal, John Wiley & Sons, vol. 80(1), pages 81-105, July.
    2. Patrice Cassagnard, 2009. "Antidumping, Social Quality of Goods and Smear Campaign," Working Papers hal-01880359, HAL.
    3. Qiu, Larry D., 2003. "Reply," Journal of International Economics, Elsevier, vol. 61(1), pages 247-248, October.
    4. Vandenbussche, Hylke & Song, Huasheng, 2008. "Trade Policy and Innovation," CEPR Discussion Papers 6747, C.E.P.R. Discussion Papers.
    5. 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.
    6. Matloob Piracha, 2004. "Export Subsidies and Countervailing Duties Under Asymmetric Information," Studies in Economics 0410, School of Economics, University of Kent.
    7. Patrice CASSAGNARD, 2009. "Antidumping, Social Quality of Goods and Smear Campaign," Working Papers 10, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Nov 2009.
    8. Patrice Cassagnard, 2009. "Antidumping, Social Quality of Goods and Smear Campaign," Working papers of CATT hal-01880359, HAL.
    9. Huynh, Pham Duy Anh, 2023. "Non-market economy status in anti-dumping investigations and proceedings: A case study of Vietnam," OSF Preprints esw4b, Center for Open Science.

    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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