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The Global Chilling Effects of Antidumping Proliferation

Author

Listed:
  • Hylke, VANDENBUSSCHE

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics)

  • Maurizio, ZANARDI

    (Tilburg University)

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 (or6.7%) 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 billions 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

  • Hylke, VANDENBUSSCHE & Maurizio, ZANARDI, 2006. "The Global Chilling Effects of Antidumping Proliferation," Discussion Papers (ECON - Département des Sciences Economiques) 2006009, Université catholique de Louvain, Département des Sciences Economiques.
  • Handle: RePEc:ctl:louvec:2006009
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    Cited by:

    1. Michael O. Moore & Maurizio Zanardi, 2009. "Does antidumping use contribute to trade liberalization in developing countries?," Canadian Journal of Economics, Canadian Economics Association, vol. 42(2), pages 469-495, May.
    2. James C. Hartigan & Hylke Vandenbussche, 2010. "Why does the WTO have an Antidumping Agreement?," LICOS Discussion Papers 25310, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    3. 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.
    4. 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.
    5. 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.
    6. KONINGS, Jozef & VANDENBUSSCHE, Hylke, 2007. "Antidumping protection and productivity of domestic firms: a firm-level analysis," CORE Discussion Papers 2007064, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. 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.
    8. Jan Baran, 2015. "The impact of antidumping on EU trade," IBS Working Papers 12/2015, Instytut Badan Strukturalnych.
    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. 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.
    11. Moore, M.O. & Zanardi, M., 2006. "Does Antidumping Use Contribute to Trade Liberalization? An Empirical Analysis," Discussion Paper 2006-61, Tilburg University, Center for Economic Research.
    12. Bown, Chad P. & Prusa, Thomas J., 2010. "U.S. antidumping: much ado about zeroing," Policy Research Working Paper Series 5352, The World Bank.
    13. Hylke VANDENBUSSCHE & Christian VIEGELAHN, 2011. "No Protectionist Surprises: EU Antidumping Policy Before and During the Great Recession," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

    More about this item

    Keywords

    Antidumping; gravity equation; trade liberalization; trade flows;

    JEL classification:

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

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