IDEAS home Printed from https://ideas.repec.org/a/bla/worlde/v28y2005i5p669-682.html
   My bibliography  Save this article

Dumping in a Global World: Why Product Quality Matters

Author

Listed:
  • José Luis Moraga‐González
  • Jean‐Marie Viaene

Abstract

Anti‐dumping actions are now the trade policy of choice of developing and transition economies. To understand why these economies have increasingly applied anti‐dumping laws, we build a simple theoretical model of vertical intra‐industry trade and investigate the strategic incentives of exporting firms to undertake dumping. We show that the definition of dumping matters. Based on a comparison of low‐quality and high‐quality prices, only unilateral dumping by the low‐quality firm obtains. By contrast, the standard WTO definition leads to either reciprocal or unilateral dumping by the high‐quality firm, depending on cross‐country differences in incomes, the height of tariff protection and on exchange rate changes.

Suggested Citation

  • José Luis Moraga‐González & Jean‐Marie Viaene, 2005. "Dumping in a Global World: Why Product Quality Matters," The World Economy, Wiley Blackwell, vol. 28(5), pages 669-682, May.
    • Handle: RePEc:bla:worlde:v:28:y:2005:i:5:p:669-682
    DOI: 10.1111/j.1467-9701.2005.00699.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-9701.2005.00699.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-9701.2005.00699.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, April.
    2. Falvey, Rodney E., 1981. "Commercial policy and intra-industry trade," Journal of International Economics, Elsevier, vol. 11(4), pages 495-511, November.
    3. Motta, Massimo & Thisse, Jacques-Francois & Cabrales, Antonio, 1997. "On the Persistence of Leadership or Leapfrogging in International Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(4), pages 809-824, November.
    4. Michael M. Knetter & Thomas J. Prusa, 2021. "Macroeconomic factors and antidumping filings: evidence from four countries," World Scientific Book Chapters, in: Thomas J Prusa (ed.), Economic Effects of Antidumping, chapter 8, pages 153-169, World Scientific Publishing Co. Pte. Ltd..
    5. Vandenbussche, Hylke & Wauthy, Xavier, 2001. "Inflicting injury through product quality: how European antidumping policy disadvantages European producers," European Journal of Political Economy, Elsevier, vol. 17(1), pages 101-116, March.
    6. Lankhuizen, Maureen, 2000. "Shifts in foreign trade, competitiveness and growth potential: from Baltics to 'Bal-techs'?," Research Policy, Elsevier, vol. 29(1), pages 9-29, January.
    7. Weinstein, David E., 1992. "Competition and unilateral dumping," Journal of International Economics, Elsevier, vol. 32(3-4), pages 379-388, May.
    8. Greenaway, David & Hine, Robert C & Milner, Chris, 1995. "Vertical and Horizontal Intra-industry Trade: A Cross Industry Analysis for the United Kingdom," Economic Journal, Royal Economic Society, vol. 105(433), pages 1505-1518, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jørgen Hansen & Jørgen Nielsen, 2009. "Dumping and Injury Margins in Markets with Horizontal as well as Vertical Product Differentiation," Journal of Industry, Competition and Trade, Springer, vol. 9(3), pages 233-250, September.
    2. Vladimir A. Karamychev & Jean-Marie Viaene, 2021. "M-Payments, Financial Inclusion, and Full Market Coverage," CESifo Working Paper Series 8995, CESifo.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. José Luis Moraga-González & Jean-Marie Viaene, 2004. "Dumping in Developing and Transition Economies," CESifo Working Paper Series 1356, CESifo.
    2. Jose Luis Moraga-Gonzalez & Jean-Marie Viaene, 2004. "Dumping in a Global World," Tinbergen Institute Discussion Papers 04-128/2, Tinbergen Institute.
    3. José Luis Moraga-González & Jean-Marie Viaene, 2004. "Anti-Dumping, Intra-Industry Trade and Quality Reversals," CESifo Working Paper Series 1365, CESifo.
    4. José L. Moraga‐González & Jean‐Marie Viaene, 2015. "Antidumping, Intra‐Industry Trade, And Quality Reversals," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 56(3), pages 777-803, August.
    5. Emanuele Bacchiega & Antonio Minniti & Arsen Palestini, 2016. "Quality, distance and trade: A strategic approach," Papers in Regional Science, Wiley Blackwell, vol. 95, pages 165-191, March.
    6. Lionel Fontagné & Michael Frudenberg & Nicolas Péridy, 1998. "Commerce international et structures de marché : une vérification empirique," Économie et Prévision, Programme National Persée, vol. 135(4), pages 147-167.
    7. Martin Andresen, 2010. "A cross-industry analysis of intra-industry trade measurement thresholds: Canada and the United States, 1988–1999," Empirical Economics, Springer, vol. 38(3), pages 793-808, June.
    8. Jørgen Hansen & Jørgen Nielsen, 2009. "Dumping and Injury Margins in Markets with Horizontal as well as Vertical Product Differentiation," Journal of Industry, Competition and Trade, Springer, vol. 9(3), pages 233-250, September.
    9. José Luis Moraga Gonzales & Jean-Marie Viaene, 2001. "Trade and Industrial Policy of Transition Economies," CESifo Working Paper Series 446, CESifo.
    10. José Luis Moraga Gonzales & Jean-Marie Viaene, 2001. "Procompetitive Trade Policies," CESifo Working Paper Series 597, CESifo.
    11. Naoto Jinji & Xingyuan Zhang & Shoji Haruna, 2010. "Trade Patterns and International Technology Spillovers:Theory and Evidence from Patent Citations," Discussion papers e-10-006, Graduate School of Economics Project Center, Kyoto University, revised Mar 2011.
    12. Greenaway, David & Torstensson, Johan, 2000. "Economic Geography, Comparative Advantage and Trade within Industries: Evidence from the OECD," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 15, pages 260-280.
    13. Michel DE VROEY, 2013. "What can civil society expect from academic macroeconomics?," LIDAM Discussion Papers IRES 2013022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    14. Jim Malley & Thomas Moutos, 2002. "Vertical product differentiation and the import demand function: theory and evidence," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 35(2), pages 257-281, May.
    15. Aditya Bhattacharjea, 2001. "Import Quotas, Export Promotion and Intra-Industry Trade," Working papers 96, Centre for Development Economics, Delhi School of Economics.
    16. Keiko Ito & Kyoji Fukao, 2005. "Physical and Human Capital Deepening and New Trade Patterns in Japan," NBER Chapters, in: International Trade in East Asia, pages 7-52, National Bureau of Economic Research, Inc.
    17. Mónica Rivera, 2014. "Trade patterns in the process of European integration: Evidence for the intraindustrial exchanges of a Mediterranean peripheral region," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(1), pages 227-249, January.
    18. José Blanes & Carmela Martín, 2000. "The nature and causes of intra-industry trade: Back to the comparative advantage explanation? The case of Spain," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 136(3), pages 423-441, September.
    19. Juliette Milgram Baleix & Ana I. Moro-Egido, 2005. "Trade types with developed and developing countries what can we learn from Spanish data? Abstract: In this paper, we investigate the nature of Spanish intra-industry trade and find that intraindustry ," Working Papers 05-06, Asociación Española de Economía y Finanzas Internacionales.
    20. Ando, Mitsuyo, 2006. "Fragmentation and vertical intra-industry trade in East Asia," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 257-281, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:worlde:v:28:y:2005:i:5:p:669-682. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.