The Global Chilling Effects of Antidumping Proliferation
AbstractAdvocates of antidumping (AD) laws downplay their effects by arguing that the trade flows that are subject to AD are small and their distortions negligible. This paper is the first to counter that notion by quantifying the worldwide effect of AD laws on aggregate trade flows. The recent proliferation of AD laws across countries provides us with a natural experiment to estimate the trade effects of adopting versus using AD laws; differences in the intensity of use among countries with older AD laws allow us to investigate reputation effects. For this purpose, we estimate worldwide trade flows using a gravity equation spanning 21 years (1980-2000) of annual observations. Our estimates confirm that AD effects are not small. Among other findings, new tough users have their aggregate imports depressed by US$15.7bn a year (or 6.7%) as a result of the AD measures they have imposed. For a traditional user like the United States, current AD measures depress annual imports by almost US$20bn on top of the cumulative negative effect of reputation. For some countries, the dampening effects of AD laws on trade flows are found to nearly offset the gains from trade liberalization.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5597.
Date of creation: Apr 2006
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Other versions of this item:
- Hylke Vandenbussche & Maurizio Zanardi, 2006. "The Global Chilling Effects of Antidumping Proliferation," LICOS Discussion Papers 16706, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Hylke, VANDENBUSSCHE & Maurizio, ZANARDI, 2006. "The Global Chilling Effects of Antidumping Proliferation," Discussion Papers (ECON - DÃ©partement des Sciences Economiques) 2006009, Université catholique de Louvain, Département des Sciences Economiques.
- Vandenbussche, H. & Zanardi, M., 2006. "The Global Chilling Effects of Antidumping Proliferation," Discussion Paper 2006-12, Tilburg University, Center for Economic Research.
- VANDENBUSSCHE, Hylke & ZANARDI, Maurizio, 2006. "The global chilling effects of antidumping proliferation," CORE Discussion Papers 2006038, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-04-08 (All new papers)
- NEP-INT-2006-04-08 (International Trade)
- NEP-REG-2006-04-08 (Regulation)
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