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Size matters! Who is bashing whom in trade war?

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  • Miyagiwa, Kaz
  • Song, Huasheng
  • Vandenbussche, Hylke

Abstract

In this paper we present a dynamic model of trade wars in contingent protection. We find that “market size” matters in trade wars in the sense that countries are more likely to initiate anti-dumping cases against countries having sufficiently smaller home markets relative to their own, but less likely against countries with larger markets. We test this “selective-targeting hypothesis” using World Bank data of worldwide anti-dumping filings during the years 1995–2014, and find strong support for it. Thus, our study indicates the importance of relative market size in understanding recent patterns of anti-dumping filings and contingent protection in world trade.

Suggested Citation

  • Miyagiwa, Kaz & Song, Huasheng & Vandenbussche, Hylke, 2016. "Size matters! Who is bashing whom in trade war?," International Review of Economics & Finance, Elsevier, vol. 45(C), pages 33-45.
  • Handle: RePEc:eee:reveco:v:45:y:2016:i:c:p:33-45
    DOI: 10.1016/j.iref.2016.05.001
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    References listed on IDEAS

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    2. Chang, Yang-Ming & Raza, Mian F., 2023. "Dumping, antidumping duties, and price undertakings," Research in Economics, Elsevier, vol. 77(1), pages 131-151.
    3. Neha B. Upadhayay, 2020. "Are only men fighting trade wars? Empirical evidence from the Temporary Trade Barriers (TTB) data," Erudite Working Paper 2020-03, Erudite.
    4. Chen, Zhisong & Su, Shong-Iee Ivan, 2022. "Countervailing effect and mitigation policy: A game-theoretical study in dual international competing photovoltaic supply chains," Renewable Energy, Elsevier, vol. 183(C), pages 160-171.
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    6. MUKUNOKI Hiroshi & OKOSHI Hirofumi, 2022. "Antidumping on Tax-induced Dumping," Discussion papers 22063, Research Institute of Economy, Trade and Industry (RIETI).
    7. Chen, Zhisong & Su, Shong-Iee Ivan, 2020. "International competition and trade conflict in a dual photovoltaic supply chain system," Renewable Energy, Elsevier, vol. 151(C), pages 816-828.

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    More about this item

    Keywords

    Reciprocal dumping; Anti-dumping; Market size;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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