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Production Effects Of Price And Cost-Based Anti-Dumping Laws Under Flexible Exchange Rates

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  • LEIDY, M.P.
  • HOEKMAN, B.M.

Abstract

This paper investigates the production response of an exporting firm when faced with the threat of an antidumping action. The firm's production decision is sensitive to market conditions at home and abroad, as well as to the definition of dumping. The authors examine the incentives facing the exporting firm under price-based, marginal-cost-based, and average-total-cost-based antidumping laws. Depending on the nature of the antidumping rules and market conditions, a firm's production may rise, fall, or remain unchanged in reponse to antidumping legislation.
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Suggested Citation

  • Leidy, M.P. & Hoekman, B.M., 1988. "Production Effects Of Price And Cost-Based Anti-Dumping Laws Under Flexible Exchange Rates," Working Papers 224, Research Seminar in International Economics, University of Michigan.
  • Handle: RePEc:mie:wpaper:224
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    Cited by:

    1. Bruce Blonigen & Thomas Prusa, 2003. "The Cost of Antidumping: the Devil is in the Details," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 6(4), pages 233-245.
    2. Belderbos, R. & Vandenbussche, H. & Veugelers, R., 2004. "Antidumping duties, undertakings, and foreign direct investment in the EU," European Economic Review, Elsevier, vol. 48(2), pages 429-453, April.
    3. Patrice CASSAGNARD, 2009. "Antidumping, Social Quality of Goods and Smear Campaign," Working Papers 10, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Nov 2009.
    4. Nelson, Douglas, 2006. "The political economy of antidumping: A survey," European Journal of Political Economy, Elsevier, vol. 22(3), pages 554-590, September.
    5. Marcel Vaillant & Marcelo Olarreaga, 2011. "Micro and Macro Determinants of trade temporary barriers: the Brazilian case over the last two decades," Documentos de Trabajo (working papers) 0711, Department of Economics - dECON.
    6. Jose Luis Moraga-Gonzalez & Jean-Marie Viaene, 2004. "Anti-dumping, Intra-industry Trade and Quality Reversals," Tinbergen Institute Discussion Papers 04-124/2, Tinbergen Institute.

    More about this item

    Keywords

    incentives ; dumping ; legislation ; production;

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