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Trade Liberalization and Antidumping: Is There a Substitution Effect?

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  • Michael Moore
  • Maurizio Zanardi

Abstract

Many nations have undergone significant trade liberalization in the last twenty years even as they have increased their use of contingent protection measures. This raises the question of whether some of the trade liberalization efforts, at times accomplished through painful reforms, have been undone through a substitution from tariffs to nontariff barriers. Among the new forms of protection, antidumping is the most relevant, as its use has spread from few developed countries to a large set of developing countries that are now among the most intense users of this instrument. This paper uses a newly developed database to examine to what extent the use of antidumping in a large set of countries is systematically influenced by the reduction of applied sectoral tariffs. The data set includes information on 29 developing and 7 developed countries from 1991 through 2002. After controlling for time-varying sectoral information as well as macroeconomic conditions, we find evidence of a substitution effect only for heavy users of antidumping among developing countries. In particular, a one standard deviation increase in sectoral trade liberalization increases the probability of observing an antidumping initiation by 32 percent. There is no similar statistically significant result for other developing countries or developed countries. We also find robust evidence of retaliation and deflection effects as determinant of antidumping filings across all subsamples.

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Bibliographic Info

Paper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers ECARES with number 2008_024.

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Length: 37 p.
Date of creation: 2008
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Publication status: Published by:
Handle: RePEc:eca:wpaper:2008_024

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Keywords: Trade Liberalization; Antidumping;

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References

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  1. Hylke, VANDENBUSSCHE & Maurizio, ZANARDI, 2006. "The Global Chilling Effects of Antidumping Proliferation," Discussion Papers (ECON - Département des Sciences Economiques) 2006009, Université catholique de Louvain, Département des Sciences Economiques.
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  12. Chad Bown & Meredith Crowley, 2003. "Trade deflection and trade depression," Working Paper Series WP-03-26, Federal Reserve Bank of Chicago.
  13. Thomas Prusa & Susan Skeath, 2002. "The economic and strategic motives for antidumping filings," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(3), pages 389-413, September.
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  16. Robert M. Feinberg & Kara M. Reynolds, 2007. "Tariff Liberalisation and Increased Administrative Protection: Is There a Quid Pro Quo?," The World Economy, Wiley Blackwell, vol. 30(6), pages 948-961, 06.
  17. Douglas Irwin, 2004. "The Rise of U.S. Antidumping Actions in Historical Perspective," NBER Working Papers 10582, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. VANDENBUSSCHE, Hylke & ZANARDI, Maurizio, . "The chilling trade effects of antidumping proliferation," CORE Discussion Papers RP -2355, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. 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.
  3. 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).
  4. Jozef KONINGS & Hylke VANDENBUSSCHE, 2009. "Antidumping Protection hurts Exporters: Firm-level evidence from France," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2009017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  5. Veysel Avsar, 2010. "Partisanship and Antidumping," Working Papers 1006, Florida International University, Department of Economics.
  6. Michael O. Moore, 2013. "Sanctuary Markets and Antidumping: An Empirical Analysis of U.S. Exporters," Working Papers 2013-3, The George Washington University, Institute for International Economic Policy.
  7. Veysel Avsar, 2010. "The Anatomy of Trade Deflection," Working Papers 1004, Florida International University, Department of Economics.

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