IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/7916.html

Innovation, antidumping, and retaliation

Author

Listed:
  • Vandenbussche, Hylke
  • Song, Huasheng
  • ,

Abstract

We develop a North-South model of reciprocal antidumping (AD). We find that AD wars are winnable for the Northern firm if the Southern market is sufficiently small relative to the North?s. The South can avert AD war with the North by expanding the home market size. It may however trigger AD war by improving its R&D capability. The model yields results that are largely consistent with recent empirical findings that (1) AD is concentrated in R&Dintensive industries, (2) AD actions are mostly between industrial and developing countries, and (3) developing countries use AD to retaliate against industrial countries.

Suggested Citation

  • Vandenbussche, Hylke & Song, Huasheng & ,, 2010. "Innovation, antidumping, and retaliation," CEPR Discussion Papers 7916, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:7916
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP7916
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107687899, January.
    2. Maurizio Zanardi, 2004. "Anti‐dumping: What are the Numbers to Discuss at Doha?," The World Economy, Wiley Blackwell, vol. 27(3), pages 403-433, March.
    3. 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.
    4. Pierre-Philippe Combes & Thierry Mayer & Jacques-François Thisse, 2008. "Economic Geography: The Integration of Regions and Nations," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00311000, HAL.
    5. Winfried Pohlmeier & Luc Bauwens & David Veredas, 2007. "High frequency financial econometrics. Recent developments," ULB Institutional Repository 2013/136223, ULB -- Universite Libre de Bruxelles.
    6. 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.
    7. repec:bla:jecsur:v:14:y:2000:i:4:p:467-92 is not listed on IDEAS
    8. Miyagiwa, Kaz & Ohno, Yuka, 2007. "Dumping as a signal of innovation," Journal of International Economics, Elsevier, vol. 71(1), pages 221-240, March.
    9. Robert M. Feinberg & Kara M. Reynolds, 2006. "The Spread of Antidumping Regimes and the Role of Retaliation in Filings," Southern Economic Journal, Southern Economic Association, vol. 72(4), pages 877-890, April.
    10. Martin, Alberto & Vergote, Wouter, 2008. "On the role of retaliation in trade agreements," Journal of International Economics, Elsevier, vol. 76(1), pages 61-77, September.
    11. Xiwang Gao & Kaz Miyagiwa, 2005. "Antidumping protection and R&D competition," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(1), pages 211-227, February.
    12. Luc Bauwens & Winfried Pohlmeier & David Veredas (ed.), 2008. "High Frequency Financial Econometrics," Studies in Empirical Economics, Springer, number 978-3-7908-1992-2, December.
    13. Thomas J. Prusa, 2021. "On the spread and impact of anti-dumping," World Scientific Book Chapters, in: Thomas J Prusa (ed.), Economic Effects of Antidumping, chapter 4, pages 45-65, World Scientific Publishing Co. Pte. Ltd..
    14. Anderson, Simon P. & Schmitt, Nicolas & Thisse, Jacques-Francois, 1995. "Who benefits from antidumping legislation?," Journal of International Economics, Elsevier, vol. 38(3-4), pages 321-337, May.
    15. Crowley, Meredith A., 2006. "Do safeguard tariffs and antidumping duties open or close technology gaps?," Journal of International Economics, Elsevier, vol. 68(2), pages 469-484, March.
    16. Thomas J. Prusa & Susan Skeath, 2021. "The Economic and Strategic Motives for Antidumping Filings," World Scientific Book Chapters, in: Thomas J Prusa (ed.), Economic Effects of Antidumping, chapter 11, pages 233-257, World Scientific Publishing Co. Pte. Ltd..
    17. Bown, Chad P. & Tovar, Patricia, 2011. "Trade liberalization, antidumping, and safeguards: Evidence from India's tariff reform," Journal of Development Economics, Elsevier, vol. 96(1), pages 115-125, September.
    18. Gérard Gaudet & Jiang Bian, 1997. "Anti-dumping Laws and Oligopolistic Trade," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 12, pages 62-86.
    19. Choi, E. Kwan & Harrigan, James, 2003. "Handbook of International Trade," Staff General Research Papers Archive 11375, Iowa State University, Department of Economics.
    20. Huriot,Jean-Marie & Thisse,Jacques-François (ed.), 2009. "Economics of Cities," Cambridge Books, Cambridge University Press, number 9780521118279, January.
    21. Bruce A. Blonigen & Thomas J. Prusa, 2001. "Antidumping," NBER Working Papers 8398, National Bureau of Economic Research, Inc.
    22. Xiwang Gao & Kaz Miyagiwa, 2005. "Antidumping protection and R&D competition," Canadian Journal of Economics, Canadian Economics Association, vol. 38(1), pages 211-227, February.
    23. Rabah Amir, 2005. "Supermodularity and Complementarity in Economics: An Elementary Survey," Southern Economic Journal, Southern Economic Association, vol. 71(3), pages 636-660, January.
    24. Bown, Chad P. & Hoekman, Bernard & Ozden, Caglar, 2003. "The pattern of US antidumping: the path from initial filing to WTO dispute settlement," World Trade Review, Cambridge University Press, vol. 2(3), pages 349-371, 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. repec:lic:licosd:28511 is not listed on IDEAS
    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).

    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. Kaz Miyagiwa & Huasheng Song & Hylke Vandenbussche, 2016. "Accounting for Stylised Facts about Recent Anti-dumping: Retaliation and Innovation," The World Economy, Wiley Blackwell, vol. 39(2), pages 221-235, February.
    2. 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.
    3. Hylke Vandenbussche & Maurizio Zanardi, 2008. "What explains the proliferation of antidumping laws? [‘Antidumping Laws in the US; Use and Welfare Consequences’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 23(53), pages 94-138.
    4. Bréchet, Thierry & Jouvet, Pierre-André & Rotillon, Gilles, 2013. "Tradable pollution permits in dynamic general equilibrium: Can optimality and acceptability be reconciled?," Ecological Economics, Elsevier, vol. 91(C), pages 89-97.
    5. Avsar, Veysel, 2014. "Partisanship and antidumping," Economic Modelling, Elsevier, vol. 38(C), pages 190-195.
    6. M.-L. Leroux & P. Pestieau, 2012. "The political economy of derived pension rights," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(5), pages 753-776, October.
    7. Cremer, Helmuth & Gahvari, Firouz & Pestieau, Pierre, 2011. "Fertility, human capital accumulation, and the pension system," Journal of Public Economics, Elsevier, vol. 95(11), pages 1272-1279.
    8. STEPHAN, Rüdiger, 2010. "An extension of disjunctive programming and its impact for compact tree formulations," LIDAM Discussion Papers CORE 2010045, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    9. GILLIS, Nicolas & GLINEUR, François, 2010. "On the geometric interpretation of the nonnegative rank," LIDAM Discussion Papers CORE 2010051, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    10. AGRELL, Per & KASPERZEC, Roman, 2010. "Dynamic joint investments in supply chains under information asymmetry," LIDAM Discussion Papers CORE 2010085, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    11. Miyagiwa, Kaz & Song, Huasheng & Vandenbussche, Hylke, 2016. "Size matters! Who is bashing whom in trade war?," International Review of Economics & Finance, Elsevier, vol. 45(C), pages 33-45.
    12. Moreno-Ternero, Juan D., 2011. "Voting over piece-wise linear tax methods," Journal of Mathematical Economics, Elsevier, vol. 47(1), pages 29-36, January.
    13. Manzi, Jorge & San Martin, Ernesto & Van Bellegem, Sébastien, 2010. "School System Evaluation By Value-Added Analysis under Endogeneity," IDEI Working Papers 631, Institut d'Économie Industrielle (IDEI), Toulouse.
    14. DI SUMMA, Marco & WOLSEY, Laurence, 2010. "Mixing sets linked by bidirected paths," LIDAM Discussion Papers CORE 2010063, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    15. LUTTENS, Roland Iwan, 2010. "Lower bounds rule!," LIDAM Discussion Papers CORE 2010069, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    16. Nelson, Douglas, 2006. "The political economy of antidumping: A survey," European Journal of Political Economy, Elsevier, vol. 22(3), pages 554-590, September.
    17. DENUIT, Michel & EECKHOUDT, Louis & TSETLIN, Ilia & WINKLER, Robert L., 2010. "Multivariate concave and convex stochastic dominance," LIDAM Discussion Papers CORE 2010044, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    18. Kokko, Ari & Gustavsson Tingvall, Patrik & Videnord, Josefin, 2017. "Which Antidumping Cases Reach the WTO?," Ratio Working Papers 286, The Ratio Institute.
    19. Mukunoki, Hiroshi, 2021. "Trade liberalization and incentives to implement antidumping protection," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 422-437.
    20. Florens, Jean-Pierre & Schwarz, Maik & Van Bellegem, Sébastien, 2010. "Nonparametric Frontier Estimation from Noisy Data," TSE Working Papers 10-179, Toulouse School of Economics (TSE).

    More about this item

    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

    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:cpr:ceprdp:7916. 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: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    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.