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The Cost of Antidumping: the Devil is in the Details

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Author Info

  • Bruce Blonigen
  • Thomas Prusa

Abstract

We argue that the costs of antidumping (AD) protection are substantially higher than standard tariff analysis would suggest. First, since AD duties are often adjusted during administrative reviews, the welfare cost of AD duties increases over time. These adjustments effectively transfer heavily distorted AD revenue to foreign firms. Second, AD duties are more costly than simply the visible costs of AD protection. There are significant additional costs associated with the prospect of protection imposed when foreign and domestic firms alter their profit maximizing behavior in order to influence the outcome of potential AD investigations. These costs may exceed the direct cost of AD duties.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/134841280410004698996
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Economic Policy Reform.

Volume (Year): 6 (2003)
Issue (Month): 4 ()
Pages: 233-245

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Handle: RePEc:taf:jpolrf:v:6:y:2003:i:4:p:233-245

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Related research

Keywords: Anti-dumping protection; Welfare cost; Directly unproductive profit seeking activity;

References

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Citations

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Cited by:
  1. repec:ebl:ecbull:v:6:y:2007:i:18:p:1-8 is not listed on IDEAS
  2. Laura ROVEGNO & Hylke VANDENBUSSCHE, 2011. "A comparative analysis of EU Antidumping rules and application," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011023, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  3. Bown, Chad P., 2005. "Global antidumping database version 1.0," Policy Research Working Paper Series 3737, The World Bank.
  4. Mustapha SADNI JALLAB, 2007. "The Political Influence Of European And American Antidumping Decisions: Some Empirical Evidence," Economics Bulletin, AccessEcon, vol. 6(18), pages 1-8.
  5. William W. Nye, 2006. "What is the Effect of U.S. Antidumping Duties on Imports? Some Evidence from the Sunset Review Process," EAG Discussions Papers 200602, Department of Justice, Antitrust Division.
  6. Chandra, Piyush & Long, Cheryl, 2013. "Anti-dumping Duties and their Impact on Exporters: Firm Level Evidence from China," World Development, Elsevier, vol. 51(C), pages 169-186.

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