IDEAS home Printed from https://ideas.repec.org/a/wly/soecon/v73y2006i2p530-545.html
   My bibliography  Save this article

The Continued Dumping and Subsidy Offset Act: An Economic Analysis

Author

Listed:
  • Yang‐Ming Chang
  • Philip G. Gayle

Abstract

Under the Continued Dumping and Subsidy Offset Act (CDSOA) of 2000, the U.S. government distributes the revenue from anti‐dumping and countervailing duties to domestic firms alleging harm. In this article, we develop a simple model to examine the economic effect of the CDSOA. For the case in which the “offset payments” to domestic firms are linked to the volume of foreign imports, the CDSOA may increase foreign imports when the domestic market is more competitive than in the Cournot equilibrium. This finding runs contrary to what the E.U. and some exporting countries have claimed. But if the market is less competitive than in Cournot, the CDSOA becomes an instrument of trade protectionism.

Suggested Citation

  • Yang‐Ming Chang & Philip G. Gayle, 2006. "The Continued Dumping and Subsidy Offset Act: An Economic Analysis," Southern Economic Journal, John Wiley & Sons, vol. 73(2), pages 530-545, October.
    • Handle: RePEc:wly:soecon:v:73:y:2006:i:2:p:530-545
    DOI: 10.1002/j.2325-8012.2006.tb00785.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/j.2325-8012.2006.tb00785.x
    Download Restriction: no
    File URL: https://libkey.io/10.1002/j.2325-8012.2006.tb00785.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Anderson, James E, 1992. "Domino Dumping, I: Competitive Exporters," American Economic Review, American Economic Association, vol. 82(1), pages 65-83, March.
    2. Brander, James A. & Spencer, Barbara J., 1984. "Trade warfare: Tariffs and cartels," Journal of International Economics, Elsevier, vol. 16(3-4), pages 227-242, May.
    3. Thomas J. Prusa, 2021. "Why are so many antidumping petitions withdrawn?," World Scientific Book Chapters, in: Thomas J Prusa (ed.), Economic Effects of Antidumping, chapter 2, pages 1-20, World Scientific Publishing Co. Pte. Ltd..
    4. Jonathan Eaton & Gene M. Grossman, 1986. "Optimal Trade and Industrial Policy Under Oligopoly," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(2), pages 383-406.
    5. J.M. Finger & H. Keith Hall & Douglas R. Nelson, 2002. "The Political Economy of Administered Protection," Chapters, in: Institutions and Trade Policy, chapter 8, pages 81-95, Edward Elgar Publishing.
    6. Joseph E. Stiglitz, 1997. "Dumping on Free Trade: The U.S. Import Trade Laws," Southern Economic Journal, John Wiley & Sons, vol. 64(2), pages 402-424, October.
    7. Douglas Irwin, 2004. "The Rise of U.S. Antidumping Actions in Historical Perspective," NBER Working Papers 10582, National Bureau of Economic Research, Inc.
    8. Dixit, Avinash, 1984. "International Trade Policy for Oligopolistic Industries," Economic Journal, Royal Economic Society, vol. 94(376a), pages 1-16, Supplemen.
    9. 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.
    10. Marvel, Howard P & Ray, Edward John, 1995. "Countervailing Duties," Economic Journal, Royal Economic Society, vol. 105(433), pages 1576-1593, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chang, Yang-Ming & Raza, Mian F., 2023. "Dumping, antidumping duties, and price undertakings," Research in Economics, Elsevier, vol. 77(1), pages 131-151.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Philip G. Gayle & Thitima Puttitanun, 2009. "Has the Byrd Amendment Affected US Imports?," The World Economy, Wiley Blackwell, vol. 32(4), pages 629-642, April.
    2. Brander, James A., 1995. "Strategic trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 27, pages 1395-1455, Elsevier.
    3. Anis, Aslam H. & Benarroch, Michael & Wen, Quan, 2002. "Persistent protection in an international exit game," Journal of International Economics, Elsevier, vol. 56(2), pages 465-487, March.
    4. Collie, David, 1991. "Export subsidies and countervailing tariffs," Journal of International Economics, Elsevier, vol. 31(3-4), pages 309-324, November.
    5. Colacicco, Rudy, 2012. "Strategic Trade Policy in General Oligopolistic Equilibrium," MPRA Paper 38118, University Library of Munich, Germany.
    6. Hong Hwang & Chao‐cheng Mai, 1999. "Optimal Export Taxes with an Endogenous Location," Southern Economic Journal, John Wiley & Sons, vol. 65(4), pages 940-952, April.
    7. Nelson, Douglas, 2006. "The political economy of antidumping: A survey," European Journal of Political Economy, Elsevier, vol. 22(3), pages 554-590, September.
    8. Keith Head & Barbara J. Spencer, 2017. "Oligopoly in international trade: Rise, fall and resurgence," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1414-1444, December.
    9. Gjermund Nese & Odd Straume, 2007. "Industry Concentration and Strategic Trade Policy in Successive Oligopoly," Journal of Industry, Competition and Trade, Springer, vol. 7(1), pages 31-52, March.
    10. Gjermund Nese & Odd Straume, 2007. "Industry Concentration and Strategic Trade Policy in Successive Oligopoly," Experimental Economics, Springer;Economic Science Association, vol. 7(1), pages 31-52, March.
    11. D. MacLaren, 1991. "Agricultural Trade Policy Analysis And International Trade Theory: A Review Of Recent Developments," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(3), pages 250-297, September.
    12. Christos Constantatos & Eleftherios Filippiadis & Eftichios Sartzetakis, 2014. "Using the allocation of emission permits for strategic trade purposes," Journal of Regulatory Economics, Springer, vol. 45(3), pages 259-280, June.
    13. Ngo, Van Long & Soubeyran, Antoine, 1997. "Cost heterogeneity, industry concentration and strategic trade policies," Journal of International Economics, Elsevier, vol. 43(1-2), pages 207-220, August.
    14. Collie, David R., 2019. "Trade Wars under Oligopoly: Who Wins and is Free Trade Sustainable?," Cardiff Economics Working Papers E2019/4, Cardiff University, Cardiff Business School, Economics Section.
    15. Veugelers, Reinhilde & Vandenbussche, Hylke, 1999. "European anti-dumping policy and the profitability of national and international collusion," European Economic Review, Elsevier, vol. 43(1), pages 1-28, January.
    16. Harris, Richard G., 1989. "The New Protectionism Revisited," Queen's Institute for Economic Research Discussion Papers 275219, Queen's University - Department of Economics.
    17. Aditya Bhattacharjea & Kanika Pathania & Uday Bhanu Sinha, 2022. "Duty Inversion and Effective Protection: A Theoretical Analysis," Working papers 330, Centre for Development Economics, Delhi School of Economics.
    18. Wu, Shih-Jye & Chang, Yang-Ming & Chen, Hung-Yi, 2014. "Antidumping duties and price undertakings: A welfare analysis," International Review of Economics & Finance, Elsevier, vol. 29(C), pages 97-107.
    19. Maurizio Zanardi, 2004. "Antidumping law as a collusive device," Canadian Journal of Economics, Canadian Economics Association, vol. 37(1), pages 95-122, February.
    20. Fletcher, Stanley M. & Nadolnyak, Denis A., 2005. "Accommodating Imperfect Competition in A Model of World Peanut Trade," 2005 Annual meeting, July 24-27, Providence, RI 19460, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:soecon:v:73:y:2006:i:2:p:530-545. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)2325-8012 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.