The economic effects of widespread application of antidumping duties to import pricing
Dumping accurs when a firm charges a price in the foreign market below its price in the domestic market when it supplies the indentical good to both markets. Provisions within the GATT allow member countries to impose antidumping (AD) duties to counteract this behavior and return the price of the dumped goods to its"fair value". The increasing incidence of dumping allegations and imposition of AD duties indicate the dumping of exports in foreign markets is a growing concern in international trade and policy discussions. The other studies of this volume have presented in quite impressive detail the evolution and present ubiquity of AD investigations and duties in import-competing countries, and have also addressed the issue of whether these trends truly indicate a rise in dumping activity. In this paper the authors focus on a separate, more theoretical issue: what is the impact of widespread dumping and use of AD duties on the exporting and importing economies?
|Date of creation:||31 Oct 1991|
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- Brander, James & Krugman, Paul, 1983.
"A 'reciprocal dumping' model of international trade,"
Journal of International Economics,
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- Syropoulos, C.A., 1990. "Export Restrictions And Tariffs Under International Oligopoliy: Effects On Firm Behavior And Welfare," Papers 4-90-4, Pennsylvania State - Department of Economics.
- Davies, Stephen W. & McGuinness, Anthony J., 1982. "Dumping at less than marginal cost," Journal of International Economics, Elsevier, vol. 12(1-2), pages 169-182, February.
- Dixit, Avinash K, 1986. "Comparative Statics for Oligopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 107-122, February. Full references (including those not matched with items on IDEAS)
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