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Anti-Dumping Duties and the Byrd Amendment

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  • Collie, David R
  • Vandenbussche, Hylke

Abstract

The Byrd amendment to US anti-dumping law distributes the revenue from anti-dumping duties imposed on foreign firms to the domestic firms that lodged the complaint of dumping. This Paper shows that the presence of the Byrd Amendment can yield lower duties and greater welfare than in its absence. This result holds when the US government puts a sufficient weight on the profits of the domestic industry in the welfare function. A sufficient condition for this result is that the market share of the domestic industry exceeds 50%, which applies in most US anti-dumping cases.

Suggested Citation

  • Collie, David R & Vandenbussche, Hylke, 2004. "Anti-Dumping Duties and the Byrd Amendment," CEPR Discussion Papers 4780, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:4780
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    References listed on IDEAS

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    1. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    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. B. Douglas Bernheim & Michael D. Whinston, 1986. "Menu Auctions, Resource Allocation, and Economic Influence," The Quarterly Journal of Economics, Oxford University Press, vol. 101(1), pages 1-31.
    4. Barbara J. Spencer & James A. Brander, 1982. "Tariff Protection and Imperfect Competition," Working Paper 517, Economics Department, Queen's University.
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    Cited by:

    1. Benjamin H. Liebman & Kara M. Reynolds, 2006. "The returns from rent-seeking: campaign contributions, firm subsidies and the Byrd Amendment," Canadian Journal of Economics, Canadian Economics Association, vol. 39(4), pages 1345-1369, November.
    2. Roger Clarke & David R. Collie, 2006. "Optimum‐Welfare And Maximum‐Revenue Tariffs Under Bertrand Duopoly," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(3), pages 398-408, July.
    3. Arastou Khatibi & Wouter Vergote, 2018. "Antidumping as a signaling device under the WTO’s ADA non-disclosure clause," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(4), pages 649-673, November.
    4. Simon, Mark (Симон, Марк) & Malakhov, Vladimir (Малахов, Владимир) & Letnyakov, Denis (Летняков, Денис) & Motin, A (Мотин, А.), 2018. "Prevention Mechanisms of Inter-Ethnic Tensions in the Context of Migratory Population Growth [Механизмы Предотвращения Межэтнической Напряженности В Условиях Миграционного Прироста Населения]," Working Papers 041824, Russian Presidential Academy of National Economy and Public Administration.

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    More about this item

    Keywords

    dumping; tariffs; US trade policy; world trade organisation;
    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

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