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 15.7 billion US$ a year (or6.7%) 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 20 billions US$ 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 Université catholique de Louvain, Département des Sciences Economiques in its series Discussion Papers (ECON - Département des Sciences Economiques) with number 2006009.
Date of creation: 01 Mar 2006
Date of revision:
Antidumping; gravity equation; trade liberalization; trade flows;
Other versions of this item:
- Vandenbussche, H. & Zanardi, M., 2006. "The Global Chilling Effects of Antidumping Proliferation," Discussion Paper 2006-12, Tilburg University, Center for Economic Research.
- 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.
- 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).
- Vandenbussche, Hylke & Zanardi, Maurizio, 2006. "The Global Chilling Effects of Antidumping Proliferation," CEPR Discussion Papers 5597, C.E.P.R. Discussion Papers.
- 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-2006-06-10 (All new papers)
- NEP-INT-2006-06-10 (International Trade)
- NEP-REG-2006-06-10 (Regulation)
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- Hylke VANDENBUSSCHE & Christian VIEGELAHN, 2011. "No Protectionist Surprises: EU Antidumping Policy Before and During the Great Recession," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
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"Does Antidumping Use Contribute to Trade Liberalization in Developing Countries,"
2008-01, The George Washington University, Institute for International Economic Policy.
- Michael O. Moore & Maurizio Zanardi, 2009. "Does antidumping use contribute to trade liberalization in developing countries?," Canadian Journal of Economics, Canadian Economics Association, vol. 42(2), pages 469-495, May.
- Bown, Chad P. & Prusa, Thomas J., 2010. "U.S. antidumping: much ado about zeroing," Policy Research Working Paper Series 5352, The World Bank.
- Moore, M.O. & Zanardi, M., 2006. "Does Antidumping Use Contribute to Trade Liberalization? An Empirical Analysis," Discussion Paper 2006-61, Tilburg University, Center for Economic Research.
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