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The Cost of Antidumping: the Devil is in the Details

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  • Bruce Blonigen
  • Thomas Prusa

Abstract

We argue that the costs of antidumping (AD) protection are substantially higher than standard tariff analysis would suggest. First, since AD duties are often adjusted during administrative reviews, the welfare cost of AD duties increases over time. These adjustments effectively transfer heavily distorted AD revenue to foreign firms. Second, AD duties are more costly than simply the visible costs of AD protection. There are significant additional costs associated with the prospect of protection imposed when foreign and domestic firms alter their profit maximizing behavior in order to influence the outcome of potential AD investigations. These costs may exceed the direct cost of AD duties.

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  • Bruce Blonigen & Thomas Prusa, 2003. "The Cost of Antidumping: the Devil is in the Details," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 6(4), pages 233-245.
  • Handle: RePEc:taf:jpolrf:v:6:y:2003:i:4:p:233-245
    DOI: 10.1080/134841280410004698996
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    Cited by:

    1. William W. Nye, 2006. "What is the Effect of U.S. Antidumping Duties on Imports? Some Evidence from the Sunset Review Process," EAG Discussions Papers 200602, Department of Justice, Antitrust Division.
    2. Bown, Chad P. & Crowley, Meredith A., 2014. "Emerging economies, trade policy, and macroeconomic shocks," Journal of Development Economics, Elsevier, vol. 111(C), pages 261-273.
    3. Metiu, Norbert, 2021. "Anticipation effects of protectionist U.S. trade policies," Journal of International Economics, Elsevier, vol. 133(C).
    4. Bown, Chad P., 2005. "Global antidumping database version 1.0," Policy Research Working Paper Series 3737, The World Bank.
    5. Michael Moore, 2015. "Sanctuary markets and antidumping: an empirical analysis of U.S. exporters," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(2), pages 309-328, May.
    6. Felbermayr, Gabriel & Sandkamp, Alexander, 2020. "The trade effects of anti-dumping duties: Firm-level evidence from China," European Economic Review, Elsevier, vol. 122(C).
    7. Chandra, Piyush, 2016. "Impact of temporary trade barriers: Evidence from China," China Economic Review, Elsevier, vol. 38(C), pages 24-48.
    8. Chandra, Piyush & Long, Cheryl, 2013. "Anti-dumping Duties and their Impact on Exporters: Firm Level Evidence from China," World Development, Elsevier, vol. 51(C), pages 169-186.
    9. Mustapha SADNI JALLAB, 2007. "The Political Influence Of European And American Antidumping Decisions: Some Empirical Evidence," Economics Bulletin, AccessEcon, vol. 6(18), pages 1-8.
    10. José Daniel Reyes, 2013. "Trade Liberalization and the Adoption of Antidumping Laws in Developing Countries," Revista Equidad y Desarrollo, Universidad de la Salle, December.
    11. Fouad Pervez, 2015. "Waiting for election season," The Review of International Organizations, Springer, vol. 10(2), pages 265-303, June.
    12. Laura ROVEGNO & Hylke VANDENBUSSCHE, 2011. "A comparative analysis of EU Antidumping rules and application," LIDAM Discussion Papers IRES 2011023, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    13. repec:ebl:ecbull:v:6:y:2007:i:18:p:1-8 is not listed on IDEAS
    14. Robert E. Baldwin, 2005. "The Political Economy of Reforming the Anti‐dumping Laws," The World Economy, Wiley Blackwell, vol. 28(5), pages 745-747, May.

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