IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-10-00413.html
   My bibliography  Save this article

Antidumping Petition: To File or Not To File

Author

Listed:
  • Shih-Jye Wu

    (National Sun Yat-Sen University)

  • Yang-Ming Chang

    (Kansas State University)

  • Hung-Yi Chen

    (Soochow University)

Abstract

Given the “normal value” of a product as common knowledge in an import-competing market, the profitability of a home firm in filing an antidumping (AD) petition against its foreign rival is shown to depend on the marginal cost differential between the home and foreign firms. When the marginal cost differential is “significantly large,” the home firm's ability to put the foreign firm at the risk of an AD violation is limited. But when the marginal cost differential is “significantly small,” the home firm is able to increase its output and lower the price of the product below its normal value, putting the foreign firm in the situation of an illegal dumping. One interesting implication is that, relative to the case without an AD law, the home firm has a stronger incentive to undertake cost-reducing activities (e.g., R&D investment or the adoption of a more efficient technology) under the law.

Suggested Citation

  • Shih-Jye Wu & Yang-Ming Chang & Hung-Yi Chen, 2011. "Antidumping Petition: To File or Not To File," Economics Bulletin, AccessEcon, vol. 31(1), pages 631-643.
    • Handle: RePEc:ebl:ecbull:eb-10-00413
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I1-P61.pdf
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. Wu, Shih-Jye & Chang, Yang-Ming & Chen, Hung-Yi, 2014. "Antidumping duties and price undertakings: A welfare analysis," International Review of Economics & Finance, Elsevier, vol. 29(C), pages 97-107.

    More about this item

    Keywords

    antidumping laws; antidumping duties; dumping margins;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade

    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:ebl:ecbull:eb-10-00413. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: John P. Conley (email available below). General contact details of provider: .

    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.