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Input tariffs as a way to deal with dumping

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  • Susan E. Skeath

Abstract

The General Agreement on Tariffs and Trade (GATT) has significantly reduced the use of tariffs as barriers to international trade in today’s marketplace. The existence of antidumping legislation, however, provides American industry with a method of procuring protection when the pressures of international competition become oppressive. Many American companies have taken advantage of the legislation and claimed injury at the hands of unfair competition from abroad, often winning the imposition of punitive duties on competing imports as compensation for previous underpricing. This article uses an analytical model to explore in detail an intriguing antidumping case, initiated in mid-1990, involving flat-panel display screens for laptop computers. The vertical relationships between laptop screen and laptop computer producers make the results of the analysis applicable to a wide variety of international industries with vertically integrated or vertically related firms.

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File URL: http://www.bostonfed.org/economic/neer/neer1993/neer693d.pdf
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Bibliographic Info

Article provided by Federal Reserve Bank of Boston in its journal New England Economic Review.

Volume (Year): (1993)
Issue (Month): Nov ()
Pages: 45-55

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Handle: RePEc:fip:fedbne:y:1993:i:nov:p:45-55

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Keywords: International trade ; Tariff;

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  1. James Brander & Paul Krugman, 1982. "A 'Reciprocal Dumping' Model of International Trade," Working Papers 513, Queen's University, Department of Economics.
  2. Skeath, Susan, 1995. "Quality-Differentiated Inputs and Trade in Vertically Related Markets," Review of International Economics, Wiley Blackwell, vol. 3(1), pages 104-17, February.
  3. Uri Ronnen, 1991. "Minimum Quality Standards, Fixed Costs, and Competition," RAND Journal of Economics, The RAND Corporation, vol. 22(4), pages 490-504, Winter.
  4. Das, Satya P. & Mohanty, Adwait K., 1984. "Dumping in international markets and welfare : A general equilibrium analysis," Journal of International Economics, Elsevier, vol. 17(1-2), pages 149-157, August.
  5. Jeffrey A. Hart, 1993. "The Anti-dumping Petition of the Advanced Display Manufacturers of America: Origins and Consequences," The World Economy, Wiley Blackwell, vol. 16(1), pages 85-109, 01.
  6. Spencer, Barbara J & Jones, Ronald W, 1991. "Vertical Foreclosure and International Trade Policy," Review of Economic Studies, Wiley Blackwell, vol. 58(1), pages 153-70, January.
  7. Dixit, Avinash, 1988. "Anti-dumping and countervailing duties under oligopoly," European Economic Review, Elsevier, vol. 32(1), pages 55-68, January.
  8. Dani Rodrik & Chang-Ho Yoon, 1989. "Strategic Trade Policy When Domestic Firms Compete Against Vertically Integrated Rivals," NBER Working Papers 2916, National Bureau of Economic Research, Inc.
  9. Webb, Michael A., 1987. "Anti-dumping laws, production location and prices," Journal of International Economics, Elsevier, vol. 22(3-4), pages 363-368, May.
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