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The global chilling effects of antidumping proliferation

Author

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  • VANDENBUSSCHE, Hylke
  • ZANARDI, Maurizio

Abstract

Advocates of antidumping (AD) laws downplay their effects by arguing that the trade flows that are subject to AD are small and their distortions negligible. This paper is the first to counter that notion by quantifying the worldwide effect of AD laws on aggregate trade flows. The recent proliferation of AD laws across countries provides us with a natural experiment to estimate the trade effects of adopting versus using AD laws; differences in the intensity of use among countries with older AD laws allow us to investigate reputation effects. For this purpose, we estimate worldwide trade flows using a gravity equation spanning 21 years (1980-2000) of annual observations. Our estimates confirm that AD effects are not small. Among other findings, new tough users have their aggregate imports depressed by 15.7 billion US$ a year (or 6.7%) as a result of the AD measures they have imposed. For a traditional user like the United States, current AD measures depress annual imports by almost 20 billion US$ on top of the cumulative negative effect of reputation. For some countries, the dampening effects of AD laws on trade flows are found to nearly offset the gains from trade liberalization.

Suggested Citation

  • VANDENBUSSCHE, Hylke & ZANARDI, Maurizio, 2006. "The global chilling effects of antidumping proliferation," LIDAM Discussion Papers CORE 2006038, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2006038
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    Cited by:

    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. Michael O. Moore & Maurizio Zanardi, 2009. "Does antidumping use contribute to trade liberalization in developing countries?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(2), pages 469-495, May.
    3. repec:lic:licosd:25310 is not listed on IDEAS
    4. Peter Egger & Douglas Nelson, 2011. "How Bad Is Antidumping? Evidence from Panel Data," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1374-1390, November.
    5. Michael O. Moore & Maurizio Zanardi, 2011. "Trade Liberalization and Antidumping: Is There a Substitution Effect?," Review of Development Economics, Wiley Blackwell, vol. 15(4), pages 601-619, November.
    6. Park, Soonchan, 2009. "The trade depressing and trade diversion effects of antidumping actions: The case of China," China Economic Review, Elsevier, vol. 20(3), pages 542-548, September.
    7. repec:lic:licosd:19607 is not listed on IDEAS
    8. Moore, M.O. & Zanardi, M., 2006. "Does Antidumping Use Contribute to Trade Liberalization? An Empirical Analysis," Other publications TiSEM c0a19bf2-9849-4620-b109-e, Tilburg University, School of Economics and Management.
    9. Konings, Jozef & Vandenbussche, Hylke, 2008. "Heterogeneous responses of firms to trade protection," Journal of International Economics, Elsevier, vol. 76(2), pages 371-383, December.
    10. Michael O. Moore, 2007. "Antidumping Reform In The Wto: A Pessimistic Appraisal," Pacific Economic Review, Wiley Blackwell, vol. 12(3), pages 357-379, August.
    11. Chad P. Bown & Thomas J. Prusa, 2021. "U.S. Anti-dumping: Much Ado about Zeroing," World Scientific Book Chapters, in: Thomas J Prusa (ed.), Economic Effects of Antidumping, chapter 10, pages 195-232, World Scientific Publishing Co. Pte. Ltd..
    12. Pierce, Justin R., 2011. "Plant-level responses to antidumping duties: Evidence from U.S. manufacturers," Journal of International Economics, Elsevier, vol. 85(2), pages 222-233.
    13. Commission, Productivity, 2010. "Australia’s Anti-dumping and Countervailing System," Inquiry Reports, Productivity Commission, Government of Australia, number 48.
    14. Jan Baran, 2015. "The impact of antidumping on EU trade," IBS Working Papers 12/2015, Instytut Badan Strukturalnych.
    15. Hylke VANDENBUSSCHE & Christian VIEGELAHN, 2011. "No Protectionist Surprises: EU Antidumping Policy Before and During the Great Recession," LIDAM Discussion Papers IRES 2011021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

    More about this item

    Keywords

    antidumping; gravity equation; trade liberalization; trade flows.;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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