Anti-Dumping Laws and Oligopolistic Trade
AbstractWe study the effect of anti-dumping laws in a differentiated products quanti - ty-setting oligopoly. Dumping may or may not occur in the model and may or may not be reciprocal. We show that the effect of adopting an anti-dumping policy on the welfare of the importing country is ambiguous. It can even lead to an increase in the consumersâ surplus in the importing country. Hence the importing country may in some cases find strong reasons for the adoption of an anti-dumping policy. We then study the endogenous determination of the equi - librium anti-dumping policies in a two-stage game with reciprocal dumping in which the two governments simultaneously choose anti-dumping policies in a first stage. We provide a suf ficient condition, relating the degree of substi - tutability in demand between the two goods and transport cost, in order for each country to have an incentive to deviate unilaterally from free trade in the presence of anti-dumping laws. We show that governments acting cooperatively to maximize world welfare should choose to endorse the institution of antidumping laws.
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Bibliographic InfoPaper provided by Université du Québec à Montréal, Département des sciences économiques in its series Cahiers de recherche du Département des sciences économiques, UQAM with number 9210.
Date of creation: Aug 1992
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- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
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- Kaz Miyagiwa & Huasheng Song & Hylke Vandenbussche, 2010.
"Innovation, Antidumping, and Retaliation,"
1009, Department of Economics, Emory University (Atlanta).
- Miyagiwa, Kaz & Song, Huasheng & Vandenbussche, Hylke, 2010. "Innovation, antidumping, and retaliation," CEPR Discussion Papers 7916, C.E.P.R. Discussion Papers.
- Miyagiwa, Kaz & Huasheng, Song & Vandenbussche, Hylke, 2010. "Innovation, anti-dumping, and retaliation," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/284160, Katholieke Universiteit Leuven.
- MIYAGIWA, Kaz & SONG, Huasheng & VANDENBUSSCHE, Hylke, 2010. "Innovation, antidumping and retaliation," CORE Discussion Papers 2010064, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Anderson, S. & Schmitt, N. & Thisse, J.F., 1992.
"Who Benifits from Antidumping Legislation?,"
dp92-12, Department of Economics, Simon Fraser University.
- Nelson, Douglas, 2006. "The political economy of antidumping: A survey," European Journal of Political Economy, Elsevier, vol. 22(3), pages 554-590, September.
- Miyagiwa, Kaz & Ohno, Yuka, 2007. "Dumping as a signal of innovation," Journal of International Economics, Elsevier, vol. 71(1), pages 221-240, March.
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