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Antidumping and market competition: implications for emerging economies

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  • Bown, Chad P.
  • McCulloch, Rachel

Abstract

While the original justification of the antidumping laws in the industrial economies was to protect domestic consumers against predation by foreign suppliers, by the early 1990s the laws and their use had evolved so much that the opposite concern arose. Rather than attacking anti-competitive behavior, dumping complaints by domestic firms were being used to facilitate collusion among suppliers and enforce cartel arrangements. This paper examines the predation and anti-competitiveness issues from the perspective of the"new users"of antidumping -- the major emerging economies for which antidumping is now a major tool in the trade policy arsenal. The paper examines these concerns in light of important ways in which the world economy and international trading system have been changing since the early 1990s, including more firms and more countries participating in international trade, but also more extensive links among suppliers and consumers through multinational firm activity and vertical specialization.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6197.

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Date of creation: 01 Sep 2012
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Handle: RePEc:wbk:wbrwps:6197

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Keywords: Free Trade; Markets and Market Access; Economic Theory&Research; Trade Law; Access to Markets;

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  1. Peter Egger & Douglas Nelson, 2011. "How Bad Is Antidumping? Evidence from Panel Data," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1374-1390, November.
  2. Chad P. Bown, 2011. "Taking Stock of Antidumping, Safeguards and Countervailing Duties, 1990–2009," The World Economy, Wiley Blackwell, vol. 34(12), pages 1955-1998, December.
  3. Claude Barfield, 2009. "High-Tech Protectionism," Books, American Enterprise Institute, number 24565, December.
  4. Robert W. Staiger & Frank A. Wolak, 1989. "Strategic Use of Antidumping Law to Enforce Tacit International Collusion," NBER Working Papers 3016, National Bureau of Economic Research, Inc.
  5. Taylor, Christopher T., 2004. "The economic effects of withdrawn antidumping investigations: is there evidence of collusive settlements?," Journal of International Economics, Elsevier, vol. 62(2), pages 295-312, March.
  6. Dean, Judith M. & Lovely, Mary E. & Mora, Jesse, 2009. "Decomposing China-Japan-U.S. trade: Vertical specialization, ownership, and organizational form," Journal of Asian Economics, Elsevier, vol. 20(6), pages 596-610, November.
  7. Hylke Vandenbussche & Maurizio Zanardi, 2010. "The chilling trade effects of antidumping proliferation," ULB Institutional Repository 2013/136355, ULB -- Universite Libre de Bruxelles.
  8. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
  9. Finger, J. Michael & Nogues, Julio J., 2008. "Safeguards and antidumping in Latin American trade liberalization," Policy Research Working Paper Series 4680, The World Bank.
  10. Michael O. Moore, 2005. "VERs and Price Undertakings under the WTO," Review of International Economics, Wiley Blackwell, vol. 13(2), pages 298-310, 05.
  11. Melo, Jaime de & Messerlin, Patrick A., 1988. "Price, quality and welfare effects of European VERs on Japanese autos," European Economic Review, Elsevier, vol. 32(7), pages 1527-1546, September.
  12. Patrick A. Messerlin, 1990. "Anti-Dumping Regulations or Pro-Cartel Law? The EC Chemical Cases," The World Economy, Wiley Blackwell, vol. 13(4), pages 465-492, December.
  13. Robert W. Staiger & Frank A. Wolak, 1990. "The Effect of Domestic Antidumping Law in the Presence of Foreign Monopoly," NBER Working Papers 3254, National Bureau of Economic Research, Inc.
  14. Michael Owen Moore & Maurizio Zanardi, 2008. "Does Antidumping Use Contribute to Trade Liberalization in Developing Countries," Working Papers 2008-01, The George Washington University, Institute for International Economic Policy.
  15. repec:fth:stanho:e-89-20 is not listed on IDEAS
  16. 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.
  17. Durling, James P. & Prusa, Thomas J., 2003. "Using safeguard protection to raise domestic rivals' costs," Japan and the World Economy, Elsevier, vol. 15(1), pages 47-68, January.
  18. Thomas Prusa & Susan Skeath, 2002. "The economic and strategic motives for antidumping filings," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(3), pages 389-413, September.
  19. Bown, Chad P. & Tovar, Patricia, 2011. "Trade liberalization, antidumping, and safeguards: Evidence from India's tariff reform," Journal of Development Economics, Elsevier, vol. 96(1), pages 115-125, September.
  20. Krupp, Corinne M. & Skeath, Susan, 2002. "Evidence on the upstream and downstream impacts of antidumping cases," The North American Journal of Economics and Finance, Elsevier, vol. 13(2), pages 163-178, August.
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