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The economic effects of widespread application of antidumping duties to import pricing

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  • Conway, Patrick
  • Dhar, Sumana
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    Abstract

    Dumping accurs when a firm charges a price in the foreign market below its price in the domestic market when it supplies the indentical good to both markets. Provisions within the GATT allow member countries to impose antidumping (AD) duties to counteract this behavior and return the price of the dumped goods to its"fair value". The increasing incidence of dumping allegations and imposition of AD duties indicate the dumping of exports in foreign markets is a growing concern in international trade and policy discussions. The other studies of this volume have presented in quite impressive detail the evolution and present ubiquity of AD investigations and duties in import-competing countries, and have also addressed the issue of whether these trends truly indicate a rise in dumping activity. In this paper the authors focus on a separate, more theoretical issue: what is the impact of widespread dumping and use of AD duties on the exporting and importing economies?

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    Bibliographic Info

    Paper provided by The World Bank in its series Policy Research Working Paper Series with number 782.

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    Date of creation: 31 Oct 1991
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    Handle: RePEc:wbk:wbrwps:782

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    Related research

    Keywords: Environmental Economics&Policies; Trade Policy; Economic Theory&Research; Markets and Market Access; Access to Markets;

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    1. James Brander & Paul Krugman, 1982. "A 'Reciprocal Dumping' Model of International Trade," Working Papers 513, Queen's University, Department of Economics.
    2. Shantayanan Devarajan & Dani Rodrik, 1989. "Pro-Competitive Effects of Trade Reform: Results from a CGE Model of Cameroon," NBER Working Papers 3176, National Bureau of Economic Research, Inc.
    3. Syropoulos, C.A., 1990. "Export Restrictions And Tariffs Under International Oligopoliy: Effects On Firm Behavior And Welfare," Papers 4-90-4, Pennsylvania State - Department of Economics.
    4. Dixit, Avinash K, 1986. "Comparative Statics for Oligopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 107-22, February.
    5. Davies, Stephen W. & McGuinness, Anthony J., 1982. "Dumping at less than marginal cost," Journal of International Economics, Elsevier, vol. 12(1-2), pages 169-182, February.
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