The Continued Dumping and Subsidy Offset Act: An Economic Analysis
AbstractUnder the Continued Dumping and Subsidy Offset Act (CDSOA) of 2000, the U.S. government distributes the revenue from anti-dumping and countervailing duties to domestic firms alleging harm. In this article, we develop a simple model to examine the economic effect of the CDSOA. For the case in which the “offset payments” to domestic firms are linked to the volume of foreign imports, the CDSOA may increase foreign imports when the domestic market is more competitive than in the Cournot equilibrium. This finding runs contrary to what the E.U. and some exporting countries have claimed. But if the market is less competitive than in Cournot, the CDSOA becomes an instrument of trade protectionism.
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Bibliographic InfoArticle provided by Southern Economic Association in its journal Southern Economic Journal.
Volume (Year): 73 (2006)
Issue (Month): 2 (October)
Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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