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The Global Chilling Effects of Antidumping Proliferation

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Author Info

  • Vandenbussche, H.
  • Zanardi, M.

    (Tilburg University, Center for Economic Research)

Abstract

Advocates 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 (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 20 billion 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 Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2006-12.

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Date of creation: 2006
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Handle: RePEc:dgr:kubcen:200612

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Web page: http://center.uvt.nl

Related research

Keywords: antidumping; gravity equation; trade liberalization; trade flows;

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Cited by:
  1. Konings, Jozef & Vandenbussche, Hylke, 2008. "Heterogeneous Responses of Firms to Trade Protection," CEPR Discussion Papers 6724, C.E.P.R. Discussion Papers.
  2. Michael Owen Moore & Maurizio Zanardi, 2008. "Trade Liberalization and Antidumping: Is There a Substitution Effect?," Working Papers 2008-09, The George Washington University, Institute for International Economic Policy.
  3. Justin Pierce, 2009. "Plant-Level Responses to Antidumping Duties: Evidence from U.S. Manufacturers," Working Papers 09-38r, Center for Economic Studies, U.S. Census Bureau, revised Jul 2011.
  4. Bown, Chad P. & Prusa, Thomas J., 2010. "U.S. antidumping: much ado about zeroing," Policy Research Working Paper Series 5352, The World Bank.
  5. 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.
  6. 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).
  7. 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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