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Does Trade Liberalization Promote Antidumping Protection? A theoretical analysis

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  • MUKUNOKI Hiroshi

Abstract

Reducing trade costs by tariff reductions can be overturned if the tariff reductions induce governments to implement "contingent" protections, such as antidumping (AD) and safeguard measures. Some empirical papers have shown that a commitment to reduce tariffs leads to a more frequent use of contingent protections, while other papers have shown that such substitution effect is rarely observed. This paper theoretically explores the conditions under which a lower import tariff promotes the import country's AD actions. The result shows that the relationship between tariff reductions and AD actions is not monotone, and that lower tariff discourages AD actions under certain conditions.

Suggested Citation

  • MUKUNOKI Hiroshi, 2017. "Does Trade Liberalization Promote Antidumping Protection? A theoretical analysis," Discussion papers 17031, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:17031
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    References listed on IDEAS

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    Cited by:

    1. Zhang, Hongyong, 2018. "Political connections and antidumping investigations: Evidence from China," China Economic Review, Elsevier, vol. 50(C), pages 34-41.

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