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Innovation, Antidumping, and Retaliation

  • Kaz Miyagiwa
  • Huasheng Song
  • Hylke Vandenbussche

We study the effect of contingency trade policy in a multicountry 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.

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Paper provided by Department of Economics, Emory University (Atlanta) in its series Emory Economics with number 1009.

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Date of creation: Oct 2010
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Handle: RePEc:emo:wp2003:1009
Contact details of provider: Web page: http://economics.emory.edu/home/journals/
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  1. Vandenbussche, Hylke & Veugelers, Reinhilde, 1996. "European Anti-dumping Policy and the Profitability of National and International Collusion," CEPR Discussion Papers 1469, C.E.P.R. Discussion Papers.
  2. Thomas J. Prusa, 1999. "On the spread and impact of antidumping," Departmental Working Papers 199916, Rutgers University, Department of Economics.
  3. Maurizio Zanardi, 2004. "Anti-dumping: What are the Numbers to Discuss at Doha?," The World Economy, Wiley Blackwell, vol. 27(3), pages 403-433, 03.
  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. 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.
  6. Michael Moore & Maurizio Zanardi, 2011. "Trade Liberalization and Antidumping: Is There a Substitution Effect?," ULB Institutional Repository 2013/136352, ULB -- Universite Libre de Bruxelles.
  7. 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.
  8. Meredith A. Crowley, 2002. "Do safeguard tariffs and antidumping duties open or close technology gaps?," Working Paper Series WP-02-13, Federal Reserve Bank of Chicago.
  9. MARTIN, Alberto & VERGOTE, Wouter, 2007. "On the role of retaliation in trade agreements," CORE Discussion Papers 2007089, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  10. Anderson, S. & Schmitt, N. & Thisse, J.F., 1992. "Who Benifits from Antidumping Legislation?," Discussion Papers dp92-12, Department of Economics, Simon Fraser University.
  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. 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.
  14. 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.
  15. 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.
  16. Winfried Pohlmeier & Luc Bauwens & David Veredas, 2007. "High frequency financial econometrics. Recent developments," ULB Institutional Repository 2013/136223, ULB -- Universite Libre de Bruxelles.
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