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Production Effects of Price- and Cost-Based Anti-dumping Laws under Flexible Exchange Rates

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  • Michael P. Leidy
  • Bernard M. Hoekman

Abstract

This paper investigates the production response of an exporting firm when faced with the threat of an antidumping action. The firm's production decision is sensitive to market conditions at home and abroad, as well as to the definition of dumping. The authors examine the incentives facing the exporting firm under price-based, marginal-cost-based, and average-total-cost-based antidumping laws. Depending on the nature of the antidumping rules and market conditions, a firm's production may rise, fall, or remain unchanged in reponse to antidumping legislation.

Suggested Citation

  • Michael P. Leidy & Bernard M. Hoekman, 1990. "Production Effects of Price- and Cost-Based Anti-dumping Laws under Flexible Exchange Rates," Canadian Journal of Economics, Canadian Economics Association, vol. 23(4), pages 873-895, November.
    • Handle: RePEc:cje:issued:v:23:y:1990:i:4:p:873-95
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    Cited by:

    1. Michael P. Leidy, 1994. "Trade Policy And Indirect Rent Seeking: A Synthesis Of Recent Work†," Economics and Politics, Wiley Blackwell, vol. 6(2), pages 97-118, July.
    2. Patrice Cassagnard, 2009. "Antidumping, Social Quality of Goods and Smear Campaign," Working Papers hal-01880359, HAL.
    3. Belderbos, R. & Vandenbussche, H. & Veugelers, R., 2004. "Antidumping duties, undertakings, and foreign direct investment in the EU," European Economic Review, Elsevier, vol. 48(2), pages 429-453, April.
    4. Patrice CASSAGNARD, 2009. "Antidumping, Social Quality of Goods and Smear Campaign," Working Papers 10, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Nov 2009.
    5. José Luis Moraga-González & Jean-Marie Viaene, 2004. "Anti-Dumping, Intra-Industry Trade and Quality Reversals," CESifo Working Paper Series 1365, CESifo.
    6. Bruce Blonigen & Thomas Prusa, 2003. "The Cost of Antidumping: the Devil is in the Details," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 6(4), pages 233-245.
    7. Alfonso Mendieta, 2005. "Alternative Effects of Antidumping Policy: Should Mexican Authorities be Worried?," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(1), pages 41-69, January-J.
    8. Nelson, Douglas, 2006. "The political economy of antidumping: A survey," European Journal of Political Economy, Elsevier, vol. 22(3), pages 554-590, September.
    9. Marcel Vaillant & Marcelo Olarreaga, 2011. "Micro and Macro Determinants of trade temporary barriers: the Brazilian case over the last two decades," Documentos de Trabajo (working papers) 0711, Department of Economics - dECON.
    10. Harris, Richard G., 1989. "Contingent Protection, and the International Distribution of Excess Capacity," Queen's Institute for Economic Research Discussion Papers 275220, Queen's University - Department of Economics.

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