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Why does the WTO have an Antidumping Agreement?

Author

Listed:
  • James C. Hartigan
  • Hylke Vandenbussche

Abstract

This paper develops a model that offers a plausible interpretation for the empirical observation of diffusion of antidumping (AD) laws amongst WTO members. Contrary to the regnant belief that this proliferation is driven mainly by retaliatory motives, our model shows that adoption and use of AD laws involve a cooperative act amongst WTO members in an infinite horizon game. The diffusion of AD laws need not result in a Prisonner.s dilemma. Instead we show that the AD agreement of the WTO can serve as a risk-sharing vehicle amongst WTO members in response to adverse shocks incurred by domestic producers.

Suggested Citation

  • James C. Hartigan & Hylke Vandenbussche, 2010. "Why does the WTO have an Antidumping Agreement?," LICOS Discussion Papers 25310, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    • Handle: RePEc:lic:licosd:25310
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    File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp253.pdf
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    References listed on IDEAS

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    15. Grossman, Gene M. & Wauters, Jasper, 2008. "United States – Sunset Reviews of Anti-Dumping Measures on Oil Country Tubular Goods from Argentina: a cloudy sunset," World Trade Review, Cambridge University Press, vol. 7(1), pages 235-263, January.
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    Cited by:

    1. Hylke Vandenbussche & Christian Viegelahn, 2011. "No Protectionist Policy Before and During the Great Recession," LICOS Discussion Papers 28511, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    2. Hylke VANDENBUSSCHE & Christian VIEGELAHN, 2011. "No Protectionist Surprises: EU Antidumping Policy Before and During the Great Recession," LIDAM Discussion Papers IRES 2011021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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    More about this item

    Keywords

    Antidumping; non-cooperative games; WTO; proliferation;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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