IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/6197.html
   My bibliography  Save this paper

Antidumping and market competition: implications for emerging economies

Author

Listed:
  • Bown, Chad P.
  • McCulloch, Rachel

Abstract

While the original justification of the antidumping laws in the industrial economies was to protect domestic consumers against predation by foreign suppliers, by the early 1990s the laws and their use had evolved so much that the opposite concern arose. Rather than attacking anti-competitive behavior, dumping complaints by domestic firms were being used to facilitate collusion among suppliers and enforce cartel arrangements. This paper examines the predation and anti-competitiveness issues from the perspective of the"new users"of antidumping -- the major emerging economies for which antidumping is now a major tool in the trade policy arsenal. The paper examines these concerns in light of important ways in which the world economy and international trading system have been changing since the early 1990s, including more firms and more countries participating in international trade, but also more extensive links among suppliers and consumers through multinational firm activity and vertical specialization.

Suggested Citation

  • Bown, Chad P. & McCulloch, Rachel, 2012. "Antidumping and market competition: implications for emerging economies," Policy Research Working Paper Series 6197, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6197
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/09/12/000158349_20120912085640/Rendered/PDF/wps6197.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Chad P. Bown & Meredith A. Crowley, 2013. "Self-Enforcing Trade Agreements: Evidence from Time-Varying Trade Policy," American Economic Review, American Economic Association, vol. 103(2), pages 1071-1090, April.
    2. Thomas J. Prusa & Susan Skeath, 2021. "The Economic and Strategic Motives for Antidumping Filings," World Scientific Book Chapters, in: Thomas J Prusa (ed.), Economic Effects of Antidumping, chapter 11, pages 233-257, World Scientific Publishing Co. Pte. Ltd..
    3. Petros C. Mavroidis & Patrick A. Messerlin & Jasper M. Wauters, 2008. "The Law and Economics of Contingent Protection in the WTO," Books, Edward Elgar Publishing, number 12731.
    4. Taylor, Christopher T., 2004. "The economic effects of withdrawn antidumping investigations: is there evidence of collusive settlements?," Journal of International Economics, Elsevier, vol. 62(2), pages 295-312, March.
    5. Jaime de Melo & Patrick Messerlin, 1988. "Price, Quality and Welfare Effects of European VERs on Japanese Autos," Post-Print hal-03393287, HAL.
    6. Jaime de Melo & Patrick Messerlin, 1988. "Effects of European VERs on Japanese Autos," Working Papers hal-01063474, HAL.
    7. Douglas R. Nelson & Hylke Vandenbussche (ed.), 2005. "The WTO and Anti-Dumping," Books, Edward Elgar Publishing, volume 0, number 3275.
    8. Michael O. Moore & Maurizio Zanardi, 2009. "Does antidumping use contribute to trade liberalization in developing countries?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(2), pages 469-495, May.
    9. Thomas J. Prusa, 2021. "Why are so many antidumping petitions withdrawn?," World Scientific Book Chapters, in: Thomas J Prusa (ed.), Economic Effects of Antidumping, chapter 2, pages 1-20, World Scientific Publishing Co. Pte. Ltd..
    10. repec:aei:rpbook:24565 is not listed on IDEAS
    11. 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.
    12. Staiger, Robert W. & Wolak, Frank A., 1992. "The effect of domestic antidumping law in the presence of foreign monopoly," Journal of International Economics, Elsevier, vol. 32(3-4), pages 265-287, May.
    13. Chad P. Bown, 2011. "Taking Stock of Antidumping, Safeguards and Countervailing Duties, 1990–2009," The World Economy, Wiley Blackwell, vol. 34(12), pages 1955-1998, December.
    14. Crowley, Meredith A. & Meng, Ning & Song, Huasheng, 2019. "Policy shocks and stock market returns: Evidence from Chinese solar panels," Journal of the Japanese and International Economies, Elsevier, vol. 51(C), pages 148-169.
    15. Finger, J. Michael & Nogues, Julio J., 2008. "Safeguards and antidumping in Latin American trade liberalization," Policy Research Working Paper Series 4680, The World Bank.
    16. Vandenbussche, Hylke & Zanardi, Maurizio, 2010. "The chilling trade effects of antidumping proliferation," European Economic Review, Elsevier, vol. 54(6), pages 760-777, August.
    17. Robert W. Staiger & Frank A. Wolak, 1989. "Strategic Use of Antidumping Law to Enforce Tacit International Collusion," NBER Working Papers 3016, National Bureau of Economic Research, Inc.
    18. 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.
    19. James P. Durling & Thomas J. Prusa, 2021. "Using safeguard protection to raise domestic rivals’ costs," World Scientific Book Chapters, in: Thomas J Prusa (ed.), Economic Effects of Antidumping, chapter 13, pages 273-294, World Scientific Publishing Co. Pte. Ltd..
    20. Krupp, Corinne M. & Skeath, Susan, 2002. "Evidence on the upstream and downstream impacts of antidumping cases," The North American Journal of Economics and Finance, Elsevier, vol. 13(2), pages 163-178, August.
    21. Melo, Jaime de & Messerlin, Patrick A., 1988. "Price, quality and welfare effects of European VERs on Japanese autos," European Economic Review, Elsevier, vol. 32(7), pages 1527-1546, September.
    22. Dean, Judith M. & Lovely, Mary E. & Mora, Jesse, 2009. "Decomposing China-Japan-U.S. trade: Vertical specialization, ownership, and organizational form," Journal of Asian Economics, Elsevier, vol. 20(6), pages 596-610, November.
    23. Claude Barfield, 2003. "High-Tech Protectionism: The Irrationality of Antidumping Laws," Books, American Enterprise Institute, number 52064, September.
    24. Robert W. Staiger & Frank A. Wolak, 1994. "Measuring Industry-Specific Protection: Antidumping in the United States," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(1994 Micr), pages 51-118.
    25. Bruce A. Blonigen & Yuka Ohno, 2019. "Endogenous Protection, Foreign Direct Investment and Protection-building Trade," World Scientific Book Chapters, in: Foreign Direct Investment, chapter 6, pages 205-233, World Scientific Publishing Co. Pte. Ltd..
    26. Patrick Messerlin, 1994. "Should Antidumping Rules be Replaced by National or International Competition Rules?," Post-Print hal-03570937, HAL.
    27. Chad P. Bown, 2011. "The Great Recession and Import Protection : The Role of Temporary Trade Barriers," World Bank Publications - Books, The World Bank Group, number 16359.
    28. repec:spo:wpecon:info:hdl:2441/7686 is not listed on IDEAS
    29. Patrick A. Messerlin, 1990. "Anti-Dumping Regulations or Pro-Cartel Law? The EC Chemical Cases," The World Economy, Wiley Blackwell, vol. 13(4), pages 465-492, December.
    30. Mr. Douglas A. Irwin, 2005. "The Rise of U.S. Antidumping Activity in Historical Perspective," IMF Working Papers 2005/031, International Monetary Fund.
    31. Michael Moore, 2015. "Sanctuary markets and antidumping: an empirical analysis of U.S. exporters," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(2), pages 309-328, May.
    32. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
    33. Michael O. Moore, 2005. "VERs and Price Undertakings under the WTO," Review of International Economics, Wiley Blackwell, vol. 13(2), pages 298-310, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cristina Herghelegiu & Luca Rubini, 2020. "‘Where have all the distortions gone?’ Appellate Body Report, Ukraine – Ammonium Nitrate, WT/DS493/AB," RSCAS Working Papers 2020/99, European University Institute.
    2. Andrea Ciani & Joel Stiebale, 2020. "Export performance under domestic anti-dumping protection," Discussion Papers 2020-08, University of Nottingham, GEP.
    3. Rou Li, 2018. "The Research on Anti-dumping, Cost and Chinese Export: Based on Multilateral Resistance Term of Gravity Model," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(4), pages 210-210, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vandenbussche, Hylke & Zanardi, Maurizio, 2010. "The chilling trade effects of antidumping proliferation," European Economic Review, Elsevier, vol. 54(6), pages 760-777, August.
    2. Gnutzmann-Mkrtchyan, Arevik & Hoffstadt, Martin, 2020. "Use and Abuse of Antidumping by Global Cartels," Hannover Economic Papers (HEP) dp-677, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    3. Felbermayr, Gabriel & Sandkamp, Alexander, 2020. "The trade effects of anti-dumping duties: Firm-level evidence from China," European Economic Review, Elsevier, vol. 122(C).
    4. Kokko, Ari & Gustavsson Tingvall, Patrik & Videnord, Josefin, 2017. "Which Antidumping Cases Reach the WTO?," Ratio Working Papers 286, The Ratio Institute.
    5. Sandkamp, Alexander, 2020. "The trade effects of antidumping duties: Evidence from the 2004 EU enlargement," Journal of International Economics, Elsevier, vol. 123(C).
    6. Baomin Dong, 2013. "Cost-Based Anti-dumping as a Repeated Game," The Economic Record, The Economic Society of Australia, vol. 89, pages 95-105, June.
    7. Metiu, Norbert, 2021. "Anticipation effects of protectionist U.S. trade policies," Journal of International Economics, Elsevier, vol. 133(C).
    8. Hylke Vandenbussche & Maurizio Zanardi, 2008. "What explains the proliferation of antidumping laws? [‘Antidumping Laws in the US; Use and Welfare Consequences’]," Economic Policy, CEPR;CES;MSH, vol. 23(53), pages 94-138.
    9. Kuenzel, David J., 2020. "WTO tariff commitments and temporary protection: Complements or substitutes?," European Economic Review, Elsevier, vol. 121(C).
    10. Bown, Chad P., 2009. "The global resort to antidumping, safeguards, and other trade remedies amidst the economic crisis," Policy Research Working Paper Series 5051, The World Bank.
    11. Kyle Bagwell & Chad P. Bown & Robert W. Staiger, 2016. "Is the WTO Passé?," Journal of Economic Literature, American Economic Association, vol. 54(4), pages 1125-1231, December.
    12. Feinberg Robert M., 2011. "Antidumping as a Development Issue," Global Economy Journal, De Gruyter, vol. 11(3), pages 1-17, September.
    13. Colin A. Carter & Tina L. Saitone & K. Aleks Schaefer, 2019. "Managed trade: The USMexico sugar suspension agreements," Canadian Journal of Economics, Canadian Economics Association, vol. 52(3), pages 1195-1222, August.
    14. Tibor Besedeš & Thomas J. Prusa, 2017. "The Hazardous Effects Of Antidumping," Economic Inquiry, Western Economic Association International, vol. 55(1), pages 9-30, January.
    15. Bown, Chad P. & Crowley, Meredith A., 2014. "Emerging economies, trade policy, and macroeconomic shocks," Journal of Development Economics, Elsevier, vol. 111(C), pages 261-273.
    16. Aksel Erbahar & Yuan Zi, 2015. "Cascading Trade Protection: Theory and Evidence from the U.S," CTEI Working Papers series 04-2015, Centre for Trade and Economic Integration, The Graduate Institute.
    17. Bruce A. Blonigen & Jee-Hyeong Park, 2004. "Dynamic Pricing in the Presence of Antidumping Policy: Theory and Evidence," American Economic Review, American Economic Association, vol. 94(1), pages 134-154, March.
    18. Robert W. Staiger & Frank A. Wolak, 1994. "Measuring Industry-Specific Protection: Antidumping in the United States," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(1994 Micr), pages 51-118.
    19. Jozef Konings & Hylke Vandenbussche & Linda Springael, 2001. "Import Diversion under European Antidumping Policy," Journal of Industry, Competition and Trade, Springer, vol. 1(3), pages 283-299, September.
    20. Bown,Chad P. & Crowley,Meredith A & Bown,Chad P. & Crowley,Meredith A, 2016. "The empirical landscape of trade policy," Policy Research Working Paper Series 7620, The World Bank.

    More about this item

    Keywords

    Free Trade; Markets and Market Access; Economic Theory&Research; Trade Law; Access to Markets;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:6197. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.