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Innovation, antidumping, and retaliation

  • Miyagiwa, Kaz
  • Song, Huasheng
  • Vandenbussche, Hylke

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.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7916.

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Date of creation: Jul 2010
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Handle: RePEc:cpr:ceprdp:7916
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  1. 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.
  2. Thomas J. Prusa, 2001. "On the spread and impact of anti-dumping," Canadian Journal of Economics, Canadian Economics Association, vol. 34(3), pages 591-611, August.
  3. MARTIN, Alberto & VERGOTE, Wouter, . "On the role of retaliation in trade agreements," CORE Discussion Papers RP 2037, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Miyagiwa, Kaz & Ohno, Yuka, 2007. "Dumping as a signal of innovation," Journal of International Economics, Elsevier, vol. 71(1), pages 221-240, March.
  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. Maurizio Zanardi, 2004. "Antidumping: what are the numbers to discuss at Doha?," ULB Institutional Repository 2013/9831, ULB -- Universite Libre de Bruxelles.
  7. 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.
  8. Jiang Bian & Gérard Gaudet, 1992. "Anti-Dumping Laws and Oligopolistic Trade," Cahiers de recherche du Département des sciences économiques, UQAM 9210, Université du Québec à Montréal, Département des sciences économiques.
  9. 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.
  10. Michael Owen Moore & Maurizio Zanardi, 2008. "Trade Liberalization and Antidumping: Is There a Substitution Effect?," Working Papers 2008-09, The George Washington University, Institute for International Economic Policy.
  11. Bruce A. Blonigen & Thomas J. Prusa, 2001. "Antidumping," NBER Working Papers 8398, National Bureau of Economic Research, Inc.
  12. Choi, E. Kwan & Harrigan, James, 2003. "Handbook of International Trade," Staff General Research Papers 11375, Iowa State University, Department of Economics.
  13. 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(03), pages 349-371, November.
  14. 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.
  15. Robert M. Feinberg & Kara M. Olson, 2004. "The Spread of Antidumping Regimes and the Role of Retaliation in Filings," International Trade 0411003, EconWPA.
  16. 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.
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