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Anti-dumping Duties and the Byrd Amendment

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  • David R. Collie
  • Hylke Vandenbussche

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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. When the government sets its anti-dumping duty to maximise a welfare function that attaches greater weight to the profits of the domestic industry than to consumer surplus or tax revenue, it is shown that the Byrd amendment will lead to lower duties and higher welfare if the weight on the profits of the domestic industry is sufficiently large. Also, the Byrd amendment makes it less likely that the anti-dumping duty will be prohibitive.

Suggested Citation

  • David R. Collie & Hylke Vandenbussche, 2004. "Anti-dumping Duties and the Byrd Amendment," LICOS Discussion Papers 14904, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  • Handle: RePEc:lic:licosd:14904
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    File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp149.pdf
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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

    Tariffs; US trade policy; WTO; Cournot oligopoly.;
    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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