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Import Diversion under European Antidumping Policy

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Author Info
Hylke Vandenbussche
Jozef Konings
Linda Springael

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Abstract

This paper is the first to study empirically the effects of European antidumping actions on import diversion from importers 'named' in an antidumping investigation, and potentially subject to protectionist measures, to countries not named' in the investigation. For this purpose we use a unique data set at the 8-digit product level. The amount of import diversion can be regarded as an indication of the effectiveness of antidumping policy which is used to protect the home industry from foreign imports. We find that -- in contrast to the US -- trade diversion in the European Union caused by antidumping actions is rather limited. This result holds even after controlling for selection-bias in the antidumping investigation procedure. We offer a number of explanations for the difference between Europe and the US regarding trade diversion.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7340.

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Date of creation: Sep 1999
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Handle: RePEc:nbr:nberwo:7340

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Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
L5 - Industrial Organization - - Regulation and Industrial Policy

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Feenstra, R.C., 1995. "Estimating the Effects of Trade Policy," Papers 95-10, California Davis - Institute of Governmental Affairs.
    Other versions:
  2. Brenton, Paul, 2001. "Anti-dumping policies in the EU and trade diversion," European Journal of Political Economy, Elsevier, vol. 17(3), pages 593-607, September. [Downloadable!] (restricted)
  3. Staiger, Robert W. & Wolak, Frank A., 1992. "The effect of domestic antidumping law in the presence of foreign monopoly," Journal of International Economics, Elsevier, vol. 32(3-4), pages 265-287, May. [Downloadable!] (restricted)
    Other versions:
  4. Robert Staiger & Frank Wolak, 1994. "Measuring Industry Specific Protection: Antidumping in the United States," International Trade 9410004, EconWPA. [Downloadable!]
    Other versions:
  5. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 120-137 National Bureau of Economic Research, Inc. [Downloadable!]
  6. Finger, J M & Hall, H Keith & Nelson, Douglas R, 1982. "The Political Economy of Administered Protection," American Economic Review, American Economic Association, vol. 72(3), pages 452-66, June. [Downloadable!] (restricted)
  7. Veugelers, Reinhilde & Vandenbussche, Hylke, 1999. "European anti-dumping policy and the profitability of national and international collusion," European Economic Review, Elsevier, vol. 43(1), pages 1-28, January. [Downloadable!] (restricted)
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  8. Harrison, Ann, 1991. "The new trade protection : price effects of antidumping and countervailing measures in the United States," Policy Research Working Paper Series 808, The World Bank. [Downloadable!]
  9. Reitzes, James D, 1993. "Antidumping Policy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(4), pages 745-63, November. [Downloadable!] (restricted)
  10. Lyons, Bruce & Matraves, Catherine & Moffatt, Peter, 2001. "Industrial Concentration and Market Integration in the European Union," Economica, London School of Economics and Political Science, vol. 68(269), pages 1-26, February. [Downloadable!] (restricted)
  11. Tharakan, P. K. M. & Waelbroeck, J., 1994. "Antidumping and countervailing duty decisions in the E.C. and in the U.S.: An experiment in comparative political economy," European Economic Review, Elsevier, vol. 38(1), pages 171-193, January. [Downloadable!] (restricted)
  12. Robert Baldwin & Jeffrey Steagall, 1994. "An analysis of ITC decisions in antidumping, countervailing duty and safeguard cases," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(2), pages 290-308, June. [Downloadable!] (restricted)
  13. Anderson, James E., 1993. "Domino dumping II: Anti-dumping," Journal of International Economics, Elsevier, vol. 35(1-2), pages 133-150, August. [Downloadable!] (restricted)
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  14. Fischer, Ronald D., 1992. "Endogenous probability of protection and firm behavior," Journal of International Economics, Elsevier, vol. 32(1-2), pages 149-163, February. [Downloadable!] (restricted)
  15. Messerlin, Patrick A & Reed, Geoffrey, 1995. "Antidumping Policies in the United States and the European Community," Economic Journal, Royal Economic Society, vol. 105(433), pages 1565-75, November. [Downloadable!] (restricted)
  16. Das, Satya P., 1992. "Market uncertainties and cyclical dumping," European Economic Review, Elsevier, vol. 36(1), pages 71-82, January. [Downloadable!] (restricted)
  17. Anderson, James E, 1992. "Domino Dumping, I: Competitive Exporters," American Economic Review, American Economic Association, vol. 82(1), pages 65-83, March. [Downloadable!] (restricted)
  18. René Belderbos, 1997. "Antidumping and tariff Jumping: Japanese firms’ DFI in the European union and the United States," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 133(3), pages 419-457, September. [Downloadable!] (restricted)
  19. Wilfried Pauwels, Hylke Vandenbussche, Marcel Weverbergh, 2001. "Strategic Behaviour under European Antidumping Duties," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 8(1), pages 75-99, February. [Downloadable!] (restricted)
  20. Blonigen, Bruce A. & Ohno, Yuka, 1998. "Endogenous protection, foreign direct investment and protection-building trade," Journal of International Economics, Elsevier, vol. 46(2), pages 205-227, December. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Bruce A. Blonigen & Benjamin H. Liebman & Wesley W. Wilson, 2007. "Trade Policy and Market Power: The Case of the US Steel Industry," NBER Working Papers 13671, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Bettina Becker & Martin Theuringer, 2000. "Macroeconomic Determinants of Contingent Protection: The Case of the European Union," IWP Discussion Paper Series 02/2000, Institute for Economic Policy, Cologne, Germany. [Downloadable!]
  3. Chad Bown & Meredith Crowley, 2004. "China's export growth and U.S. trade policy," Working Paper Series WP-04-28, Federal Reserve Bank of Chicago. [Downloadable!]
  4. Hylke, VANDENBUSSCHE & Maurizio, ZANARDI, 2007. "What Explains the Proliferation of Antidumping Laws ?," Discussion Papers (ECON - Département des Sciences Economiques) 2007027, Université catholique de Louvain, Département des Sciences Economiques. [Downloadable!]
    Other versions:
  5. Chad P. Bown, 2004. ""How Different Are Safeguards from Antidumping? Evidence from US Trade Policies Toward Steel"," Econometric Society 2004 North American Summer Meetings 434, Econometric Society. [Downloadable!]
  6. Chad P. Bown & Meredith Crowley, 2004. "Policy externalities: how U.S. antidumping affects Japanese exports to the EU," Working Paper Series WP-04-12, Federal Reserve Bank of Chicago. [Downloadable!]
    Other versions:
  7. Joseph, Siny & Lavoie, Nathalie, 2008. "Effectiveness of COOL in the U.S. Seafood Industry," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6260, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  8. Bown, Chad P., 2009. "The global resort to antidumping, safeguards, and other trade remedies amidst the economic crisis," Policy Research Working Paper Series 5051, The World Bank. [Downloadable!]
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