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Universal Dumping of Homogeneous Products

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  • Murray, Tracy
  • Turdaliev, Nurlan

Abstract

Contrary to predictions from traditional comparative advantage analysis, a class of models with imperfect competition predicts intra-industry trade in homogeneous goods. Brander and Krugman offer a model with two countries and one firm in each country which generates the outcome that both firms dump into the export market (reciprocal dumping). The present paper determines the extent to which higher dimensionality alters this outcome by introducing a model with several firms in each of several countries. It is shown that dumping is universal. Thus, whenever trade occurs dumping occurs. Copyright 1999 by Blackwell Publishing Ltd.

Suggested Citation

  • Murray, Tracy & Turdaliev, Nurlan, 1999. "Universal Dumping of Homogeneous Products," Review of International Economics, Wiley Blackwell, vol. 7(4), pages 580-589, November.
  • Handle: RePEc:bla:reviec:v:7:y:1999:i:4:p:580-89
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    Cited by:

    1. James C. Hartigan & Hylke Vandenbussche, 2010. "Why does the WTO have an Antidumping Agreement?," LICOS Discussion Papers 25310, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    2. Aditya Bhattacharjea, 2001. "Import Quotas, Export Promotion and Intra-Industry Trade," Working papers 96, Centre for Development Economics, Delhi School of Economics.
    3. Villena, Marcelo J. & Araneda, Axel A., 2017. "Dynamics and stability in retail competition," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 134(C), pages 37-53.
    4. Emmanuel Olusegun Stober, 2014. "The Influence of Labor Intensive Export on China's Economy Growth," Working Papers 3, Bucharest Academy of Economic Studies, Research Center in International Business and Economics (RCIBE).

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