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Dumping in Developing and Transition Economies

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  • Jose Luis Moraga-Gonzalez

    ()
    (Groningen University)

  • Jean-Marie Viaene

    ()
    (Faculty of Economics, Erasmus Universiteit Rotterdam)

Abstract

We build a simple theoretical model to understand why developing and transition economieshave increasingly applied anti-dumping laws. To that end, we investigate the strategic incentivesof oligopolistic exporting firms to undertake dumping in these economies. We show that dumpingmay be due to cross-country differences in income, to the extent of tariff protection and to theexchange rate depreciations observed recently. Dumping may arise even if consumers exhaustall arbitrage possibilities.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 04-125/2.

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Date of creation: 19 Nov 2004
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Handle: RePEc:dgr:uvatin:20040125

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Web page: http://www.tinbergen.nl

Related research

Keywords: Dumping; Exchange Rate; Optimal Thade Policy; Product Quality;

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References

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  1. José Luis Moraga-González & Jean-Marie Viaene, 2004. "Anti-Dumping, Intra-Industry Trade and Quality Reversals," CESifo Working Paper Series 1365, CESifo Group Munich.
  2. Michael M. Knetter & Thomas J. Prusa, 2000. "Macroeconomic Factors and Antidumping Filings: Evidence from Four Countries," NBER Working Papers 8010, National Bureau of Economic Research, Inc.
  3. Feinberg, Robert M, 1989. "Exchange Rates and "Unfair Trade."," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 704-07, November.
  4. VANDENBUSSCHE, Hylke & WAUTHY, Xavier, . "Inflicting injury through product quality: how European antidumping policy disadvantages European producers," CORE Discussion Papers RP -1508, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Lankhuizen, Maureen, 2000. "Shifts in foreign trade, competitiveness and growth potential: from Baltics to 'Bal-techs'?," Research Policy, Elsevier, vol. 29(1), pages 9-29, January.
  6. Finger,J. Michael & Francis Ng & Wangchuk, Sonam, 2001. "Antidumping as safeguard policy," Policy Research Working Paper Series 2730, The World Bank.
  7. John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384, December.
  8. Motta, M. & Thisse, J.-F. & Cabrales, A., . "On the persistence of leadership or leapfrogging in international trade," CORE Discussion Papers RP -1287, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  9. Cabrales, Antonio & Motta, Massimo, 2001. "Country asymmetries, endogenous product choice and the timing of trade liberalization," European Economic Review, Elsevier, vol. 45(1), pages 87-107, January.
  10. Chonira Aturupane & Simeon Djankov & Bernard Hoekman, 1999. "Horizontal and vertical intra-industry trade between Eastern Europe and the European union," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(1), pages 62-81, March.
  11. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
  12. Choi, E. Kwan & Harrigan, James, 2003. "Handbook of International Trade," Staff General Research Papers 11375, Iowa State University, Department of Economics.
  13. James Brander & Paul Krugman, 1982. "A 'Reciprocal Dumping' Model of International Trade," Working Papers 513, Queen's University, Department of Economics.
  14. David Greenaway & Robert Hine & Chris Milner, 1994. "Country-specific factors and the pattern of horizontal and vertical intra-industry trade in the UK," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(1), pages 77-100, March.
  15. Curtis Eaton, B. & Schmitt, N., 1991. "Flexible Manufacturing and Market Structure," Papers 1991-02, Tasmania - Department of Economics.
  16. Weinstein, David E., 1992. "Competition and unilateral dumping," Journal of International Economics, Elsevier, vol. 32(3-4), pages 379-388, May.
  17. Bruce A. Blonigen & Thomas J. Prusa, 2001. "Antidumping," NBER Working Papers 8398, National Bureau of Economic Research, Inc.
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Cited by:
  1. Jose Luis Moraga-Gonzalez & Jean-Marie Viaene, 2004. "Dumping in a Global World," Tinbergen Institute Discussion Papers 04-128/2, Tinbergen Institute.

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