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Strategic Behaviour under European Antidumping Duties

  • Wilfried Pauwels
  • Hylke Vandenbussche
  • Marcel Weverbergh

In this paper we develop a dynamic two-period model of imperfect competition to analyse the effects of European antidumping duties on firm behaviour and domestic welfare. Our model is one of the first to complement the European empirical literature on antidumping policy and can usefully be compared with papers dealing with the effects of US antidumping policy. We arrive at three important conclusions: (a) the strategic behaviour of European firms under European antidumping rules may run in the opposite direction compared to the incentives for US firms provided under the US antidumping rules; (b) US antidumping rules perform better than European rules in terms of domestic welfare and in terms of protecting domestic value added and employment; (c) the Strategic Trade Policy argument for protection need not apply for antidumping duties because the level of protection is endogenously determined by the firms involved.

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Article provided by Taylor & Francis Journals in its journal International Journal of the Economics of Business.

Volume (Year): 8 (2001)
Issue (Month): 1 ()
Pages: 75-99

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Handle: RePEc:taf:ijecbs:v:8:y:2001:i:1:p:75-99
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  1. Patrick Messerlin, 1989. "The ec antidumping regulations: A first economic appraisal, 1980–85," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 125(3), pages 563-587, September.
  2. Hylke Vandenbussche, 1996. "Is European antidumping protection against Central Europe too high?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 132(1), pages 116-138, March.
  3. Martin J Osborne & Ariel Rubinstein, 2009. "A Course in Game Theory," Levine's Bibliography 814577000000000225, UCLA Department of Economics.
  4. Roberts, John & Sonnenschein, Hugo, 1976. "On the existence of Cournot equilbrium without concave profit functions," Journal of Economic Theory, Elsevier, vol. 13(1), pages 112-117, August.
  5. Staiger, Robert W. & Wolak, Frank A., 1992. "The effect of domestic antidumping law in the presence of foreign monopoly," Journal of International Economics, Elsevier, vol. 32(3-4), pages 265-287, May.
  6. Collie, David R. & Le, Vo Phuong Mai, 2008. "Anti-Dumping Regulations: Anti-Competitive and Anti-Export," Cardiff Economics Working Papers E2008/27, Cardiff University, Cardiff Business School, Economics Section.
  7. René Belderbos, 1997. "Antidumping and tariff Jumping: Japanese firms’ DFI in the European union and the United States," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 133(3), pages 419-457, September.
  8. Anderson, Simon P. & Schmitt, Nicolas & Thisse, Jacques-Francois, 1995. "Who benefits from antidumping legislation?," Journal of International Economics, Elsevier, vol. 38(3-4), pages 321-337, May.
  9. Jonathan Eaton & Gene M. Grossman, 1983. "Optimal Trade and Industrial Policy Under Oligopoly," NBER Working Papers 1236, National Bureau of Economic Research, Inc.
  10. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February.
  11. Reitzes, James D, 1993. "Antidumping Policy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(4), pages 745-63, November.
  12. Robert W. Staiger & Frank A. Wolak, 1989. "Strategic Use of Antidumping Law to Enforce Tacit International Collusion," NBER Working Papers 3016, National Bureau of Economic Research, Inc.
  13. Fischer, Ronald D., 1992. "Endogenous probability of protection and firm behavior," Journal of International Economics, Elsevier, vol. 32(1-2), pages 149-163, February.
  14. Tharakan, P. K. M. & Waelbroeck, J., 1994. "Antidumping and countervailing duty decisions in the E.C. and in the U.S.: An experiment in comparative political economy," European Economic Review, Elsevier, vol. 38(1), pages 171-193, January.
  15. Bruce A. Blonigen & Thomas J. Prusa, 2001. "Antidumping," NBER Working Papers 8398, National Bureau of Economic Research, Inc.
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