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Input tariffs as a way to deal with dumping

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  • Susan E. Skeath

Abstract

The General Agreement on Tariffs and Trade (GATT) has significantly reduced the use of tariffs as barriers to international trade in today’s marketplace. The existence of antidumping legislation, however, provides American industry with a method of procuring protection when the pressures of international competition become oppressive. Many American companies have taken advantage of the legislation and claimed injury at the hands of unfair competition from abroad, often winning the imposition of punitive duties on competing imports as compensation for previous underpricing. This article uses an analytical model to explore in detail an intriguing antidumping case, initiated in mid-1990, involving flat-panel display screens for laptop computers. The vertical relationships between laptop screen and laptop computer producers make the results of the analysis applicable to a wide variety of international industries with vertically integrated or vertically related firms.

Suggested Citation

  • Susan E. Skeath, 1993. "Input tariffs as a way to deal with dumping," New England Economic Review, Federal Reserve Bank of Boston, issue Nov, pages 45-55.
  • Handle: RePEc:fip:fedbne:y:1993:i:nov:p:45-55
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    File URL: http://www.bostonfed.org/economic/neer/neer1993/neer693d.pdf
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    References listed on IDEAS

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    1. Skeath, Susan, 1995. "Quality-Differentiated Inputs and Trade in Vertically Related Markets," Review of International Economics, Wiley Blackwell, vol. 3(1), pages 104-117, February.
    2. Brander, James & Krugman, Paul, 1983. "A 'reciprocal dumping' model of international trade," Journal of International Economics, Elsevier, vol. 15(3-4), pages 313-321, November.
    3. Dani Rodrik & Chang-Ho Yoon, 1989. "Strategic Trade Policy When Domestic Firms Compete Against Vertically Integrated Rivals," NBER Working Papers 2916, National Bureau of Economic Research, Inc.
    4. Dixit, Avinash, 1988. "Anti-dumping and countervailing duties under oligopoly," European Economic Review, Elsevier, vol. 32(1), pages 55-68, January.
    5. Uri Ronnen, 1991. "Minimum Quality Standards, Fixed Costs, and Competition," RAND Journal of Economics, The RAND Corporation, vol. 22(4), pages 490-504, Winter.
    6. Webb, Michael A., 1987. "Anti-dumping laws, production location and prices," Journal of International Economics, Elsevier, vol. 22(3-4), pages 363-368, May.
    7. Barbara J. Spencer & Ronald W. Jones, 1991. "Vertical Foreclosure and International Trade Policy," Review of Economic Studies, Oxford University Press, vol. 58(1), pages 153-170.
    8. Jeffrey A. Hart, 1993. "The Anti-dumping Petition of the Advanced Display Manufacturers of America: Origins and Consequences," The World Economy, Wiley Blackwell, vol. 16(1), pages 85-109, January.
    9. Das, Satya P. & Mohanty, Adwait K., 1984. "Dumping in international markets and welfare : A general equilibrium analysis," Journal of International Economics, Elsevier, vol. 17(1-2), pages 149-157, August.
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    Keywords

    International trade ; Tariff;

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