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Production Effects Of Price And Cost-Based Anti-Dumping Laws Under Flexible Exchange Rates

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Author Info

  • LEIDY, M.P.
  • HOEKMAN, B.M.

Abstract

This paper investigates the production response of an exporting firm when faced with the threat of an antidumping action. The firm's production decision is sensitive to market conditions at home and abroad, as well as to the definition of dumping. The authors examine the incentives facing the exporting firm under price-based, marginal-cost-based, and average-total-cost-based antidumping laws. Depending on the nature of the antidumping rules and market conditions, a firm's production may rise, fall, or remain unchanged in reponse to antidumping legislation.

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Bibliographic Info

Paper provided by Research Seminar in International Economics, University of Michigan in its series Working Papers with number 224.

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Length: 29 pages
Date of creation: 1988
Date of revision:
Handle: RePEc:mie:wpaper:224

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Postal: ANN ARBOR MICHIGAN 48109
Web page: http://www.fordschool.umich.edu/rsie/
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Related research

Keywords: incentives ; dumping ; legislation ; production;

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Cited by:
  1. Nelson, Douglas, 2006. "The political economy of antidumping: A survey," European Journal of Political Economy, Elsevier, vol. 22(3), pages 554-590, September.
  2. Belderbos, R. & Vandenbussche, H. & Veugelers, R., 2004. "Antidumping duties, undertakings, and foreign direct investment in the EU," European Economic Review, Elsevier, vol. 48(2), pages 429-453, April.
  3. Bruce Blonigen & Thomas Prusa, 2003. "The Cost of Antidumping: the Devil is in the Details," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 6(4), pages 233-245.
  4. Marcel Vaillant & Marcelo Olarreaga, 2011. "Micro and Macro Determinants of trade temporary barriers: the Brazilian case over the last two decades," Documentos de Trabajo (working papers) 0711, Department of Economics - dECON.

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