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The chilling trade effects of antidumping proliferation

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  • Vandenbussche, Hylke
  • Zanardi, Maurizio

Abstract

Advocates of antidumping (AD) laws downplay their negative effects by arguing that the trade flows that are subject to AD are small and their distortions negligible. But while the adverse effect of AD on product-level trade has long been established, the question remains whether there are trade effects at the aggregate level. The recent proliferation wave of AD laws and their use provides us with a unique policy change to estimate the true trade effects of adopting and enforcing AD laws. For this purpose, we estimate the effect of AD on bilateral trade flows between the "new adopters" of AD laws and their trade partners. Using a gravity model of annual observations (1980-2000) our estimates show that AD has trade chilling effects on aggregate import volumes but the impacts are heterogeneous across sectors. We find that new tough users experience a chilling of their aggregate imports of 14 billion US$ a year (or 5.9%) as a result of AD measures. For some countries like Mexico and India, the dampening effects of AD laws on trade flows are found to substantially offset the increase in trade volumes derived from trade liberalization.

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Bibliographic Info

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 54 (2010)
Issue (Month): 6 (August)
Pages: 760-777

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Handle: RePEc:eee:eecrev:v:54:y:2010:i:6:p:760-777

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Web page: http://www.elsevier.com/locate/eer

Related research

Keywords: Antidumping Gravity equation Trade liberalization Trade flows;

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References

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Citations

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Cited by:
  1. Lu, Yi & Tao, Zhigang & Zhang, Yan, 2013. "How do exporters respond to antidumping investigations?," Journal of International Economics, Elsevier, vol. 91(2), pages 290-300.
  2. Chad P. Bown, 2011. "Taking Stock of Antidumping, Safeguards and Countervailing Duties, 1990–2009," The World Economy, Wiley Blackwell, vol. 34(12), pages 1955-1998, December.
  3. Robert M. Feinberg, 2011. "Antidumping as a Development Issue," Working Papers 2011-06, American University, Department of Economics.
  4. Tibor Besedeš & Thomas J. Prusa, 2013. "Antidumping and the Death of Trade," NBER Working Papers 19555, National Bureau of Economic Research, Inc.
  5. C. Carter & S. Mohapatra, 2013. "Inventories and antidumping: the case of orange juice trade," Empirical Economics, Springer, vol. 45(1), pages 247-266, August.
  6. Kubo, Koji, 2013. "Myanmar's non-resource export potential after the lifting of economic sanctions : a gravity model analysis," IDE Discussion Papers 426, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  7. Christian Gormsen, 2011. "Anti-dumping with heterogeneous firms," Economie Internationale, CEPII research center, issue 125, pages 41-64.
  8. Laura Rovegno, 2013. "Trade protection and market power: evidence from US antidumping and countervailing duties," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 149(3), pages 443-476, September.
  9. Patricia, Tovar, 2011. "India: The use of temporary trade barriers," MPRA Paper 41054, University Library of Munich, Germany.
  10. Hylke VANDENBUSSCHE & Christian VIEGELAHN, 2011. "No Protectionist Surprises: EU Antidumping Policy Before and During the Great Recession," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  11. Bown, Chad P. & McCulloch, Rachel, 2012. "Antidumping and market competition: implications for emerging economies," Policy Research Working Paper Series 6197, The World Bank.

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