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How does consumer quality misperception change European Union antidumping actions?

Author

Listed:
  • Cassagnard Patrice

    (Université de Pau et des Pays de l’Adour)

  • Thiam Mamadou

    (Université Paris 1 Panthéon-Sorbonne
    Centre Sorbonne Cousin)

Abstract

The European Union is increasingly using antidumping (AD) procedures to better regulate international trade. At a time when we are talking about the progressive rise of a globalization among friends, it is necessary to clarify all the economic mechanisms that lead to the adoption of an AD duty. This paper shows that the misperception of the quality of an imported good is an effective explanation of AD duties. In particular, we show that questioning the quality of goods imported from a country significantly increases the probability of initiating AD investigations against that country. The evidence is both theoretical and empirical and focuses on trade relations between the European Union and China.

Suggested Citation

  • Cassagnard Patrice & Thiam Mamadou, 2024. "How does consumer quality misperception change European Union antidumping actions?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 160(4), pages 1247-1275, November.
    • Handle: RePEc:spr:weltar:v:160:y:2024:i:4:d:10.1007_s10290-024-00553-5
    DOI: 10.1007/s10290-024-00553-5
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    More about this item

    Keywords

    Dumping; Price undertaking; Quality; European Union; China;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • F1 - International Economics - - Trade
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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