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U.S. Antidumping Policies: The Case of Steel

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  • Barry J. Eichengreen
  • Hans Van der Ven

Abstract

This paper examines the controversy surrounding recent allegations that foreign producers are dumping steel products onto U.S. markets. The paper is in four sections, which take four quite distinct views of dumping and recent U.S. antidumping policies, emphasizing the changing definition of dumping and the development of administrative procedures. Section II focuses on the application of these procedures to the international steel trade, taking as a case study the most noteworthy of recent innovations : the Trigger Price Mechanism for steel. Section III considers models that can be used to analyze dumping. The models of most relevance to the practices currently at issue in the steel industry seem to us models of oligopolistic rivalry in imperfectly competitive, segmented markets. We develop a model designed to identify crucial factors upon which the incidence of dumping will depend: the number of firms producing for each national market,their costs, their market shares, and the extent to which they recognizeand exploit their mutual dependence. Finally, in Section IV we calibrate these models to illustrate how the extent of dumping and the effects of the TPM depend on the model's parameters.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 1098.

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Date of creation: Mar 1983
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Publication status: published as Eichengreen, Barry J. and Hans Van der Ven. "U.S. Anti-Dumping Policies: The Case of Steel." The Structure and Evolution of Recent U.S. Trade Policy,edited by Robert E. Baldwin and Anne O. Krueger. Chicago: UCP, 1984, pp. 67-103.
Handle: RePEc:nbr:nberwo:1098

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  1. Klaus Stegemann, 1980. "The Efficiency Rationale of Antidumping Policy and Other Measures of Contingency Protection," Working Papers 387, Queen's University, Department of Economics.
  2. Brander, James A., 1981. "Intra-industry trade in identical commodities," Journal of International Economics, Elsevier, vol. 11(1), pages 1-14, February.
  3. Stone, Joe A, 1979. "Price Elasticities of Demand for Imports and Exports: Industry Estimates for the U.S., the E.E.C. and Japan," The Review of Economics and Statistics, MIT Press, vol. 61(2), pages 306-12, May.
  4. Morton I. Kamien & Nancy L. Schwartz, 1981. "Conjectural Variations," Discussion Papers 466S, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  5. Dixit, Avinash & Stern, Nicholas, 1982. "Oligopoly and welfare : A unified presentation with applications to trade and development," European Economic Review, Elsevier, vol. 19(1), pages 123-143.
  6. Kravis, Irving B & Lipsey, Robert E, 1977. "Export Prices and the Transmission of Inflation," American Economic Review, American Economic Association, vol. 67(1), pages 155-63, February.
  7. Eichengreen, Barry J., 1983. "Effective protection and exchange-rate determination," Journal of International Money and Finance, Elsevier, vol. 2(1), pages 1-15, April.
  8. Crouhy-veyrac, Liliane & Crouhy, Michel & Melitz, Jacques, 1982. "More about the law of one price," European Economic Review, Elsevier, vol. 18(2), pages 325-344.
  9. James A. Brander & Barbara J. Spencer, 1984. "Export Subsidies and International Market Share Rivalry," NBER Working Papers 1464, National Bureau of Economic Research, Inc.
  10. Dansby, Robert E & Willig, Robert D, 1979. "Industry Performance Gradient Indexes," American Economic Review, American Economic Association, vol. 69(3), pages 249-60, June.
  11. James A. Brander & Paul Krugman, 1983. "A 'Reciprocal Dumping' Model of International Trade," NBER Working Papers 1194, National Bureau of Economic Research, Inc.
  12. A. M. Spence, 1981. "The Learning Curve and Competition," Bell Journal of Economics, The RAND Corporation, vol. 12(1), pages 49-70, Spring.
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Cited by:
  1. Bruce A. Blonigen & Jee-Hyeong Park, 2001. "Dynamic Pricing in the Presence of Antidumping Policy: Theory and Evidence," NBER Working Papers 8477, National Bureau of Economic Research, Inc.

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