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Unionization and European Antidumping Protection

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  • Vandenbussche, Hylke
  • Veugelers, Reinhilde
  • Konings, Jozef

Abstract

In recent decades, the WTO has resulted in a worldwide reduction of tariffs and VERs. Instead a new type of trade policy has emerged in the form of antidumping measures. In principle their use should be limited to instances of unfair foreign imports. However, even without unfair pricing, a foreign importer can fall within the scope of the European antidumping legislation. The purpose of this paper is to analyze the interaction between unionization and the likelihood, type and effects of antidumping measures. We present a simple theoretical model that is well embedded in EU legal practice, to show that the presence of European unions leads to an increase in both the likelihood and the level of antidumping protection. In addition our results indicate that a cost asymmetry in the form of a unionized wage differential can alter the relative probability of a duty versus an undertaking. These effects depend on the intensity of product market competition. The paper concludes with some evidence from EU antidumping cases between 1985-95. Copyright 2001 by Oxford University Press.

Suggested Citation

  • Vandenbussche, Hylke & Veugelers, Reinhilde & Konings, Jozef, 2001. "Unionization and European Antidumping Protection," Oxford Economic Papers, Oxford University Press, vol. 53(2), pages 297-317, April.
  • Handle: RePEc:oup:oxecpp:v:53:y:2001:i:2:p:297-317
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    Cited by:

    1. Dobbelaere, Sabien, 2004. "Estimation of price-cost margins and union bargaining power for Belgian manufacturing," International Journal of Industrial Organization, Elsevier, vol. 22(10), pages 1381-1398, December.
    2. Ana Mauleon & Huasheng Song & Vincent Vannetelbosch, 2010. "Networks of Free Trade Agreements among Heterogeneous Countries," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(3), pages 471-500, June.
    3. Kao, Kuo-Feng & Peng, Cheng-Hau, 2016. "Anti-dumping protection, price undertaking and product innovation," International Review of Economics & Finance, Elsevier, vol. 41(C), pages 53-64.
    4. Lokshin, Boris & Mohnen, Pierre, 2013. "Do R&D tax incentives lead to higher wages for R&D workers? Evidence from The Netherlands," Research Policy, Elsevier, pages 823-830.
    5. S. Dobbelaere, 2003. "Joint Estimation of Price-Cost Margins and Union Bargaining Power for Belgian Manufacturing," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/171, Ghent University, Faculty of Economics and Business Administration.
    6. James C. Hartigan & Hylke Vandenbussche, 2010. "Why does the WTO have an Antidumping Agreement?," LICOS Discussion Papers 25310, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    7. Sabien Dobbelaere, 2002. "Joint Estimation of Mark-up and Bargaining Power Parameters for Belgian Manufacturing," LICOS Discussion Papers 12102, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    8. Greetje Everaert, 2003. "Technology Adoption under Price Undertakings," LICOS Discussion Papers 13703, LICOS - Centre for Institutions and Economic Performance, KU Leuven.

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