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Innovation, antidumping and retaliation

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  • MIYAGIWA, Kaz

    (Emory University, USA)

  • SONG, Huasheng

    (CRPE and College of Economics, Zhejiang University, China; Université catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium)

  • VANDENBUSSCHE, Hylke

    (Université catholique de Louvain, CORE and IRES, B-1348 Louvain-la-Neuve, Belgium; KULeuven-LICOS & CEPR)

Abstract

We study the effect of contingency trade policy in a multi-country oligopoly model with and without R&D opportunities. We show that firms benefit from unilateral protection but initiate antidumping (AD) only against the targets domiciled in substantially smaller countries. Also, AD filings are more likely when firms face R&D opportunities. These results are consistent with recent empirical findings, namely, (1) actions are mostly between industrial and developing countries, (2) developing countries use AD to retaliate against industrial countries, and (3) AD is concentrated in R&D-intensive industries. Interestingly, intellectual property rights violations in developing countries have no connection to AD filings.

Suggested Citation

  • MIYAGIWA, Kaz & SONG, Huasheng & VANDENBUSSCHE, Hylke, 2010. "Innovation, antidumping and retaliation," LIDAM Discussion Papers CORE 2010064, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2010064
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    References listed on IDEAS

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    Cited by:

    1. Hylke Vandenbussche & Christian Viegelahn, 2011. "No Protectionist Policy Before and During the Great Recession," LICOS Discussion Papers 28511, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    2. 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).

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    More about this item

    Keywords

    R&D; antidumping; intellectual property rights; reciprocal dumping;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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