Anti-dumping Policy and Anti-dumping Retaliation

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Title:	Anti-dumping Policy and Anti-dumping Retaliation
Authors:	Chen, Chin-Sheng;Kao, Kuo-Feng
Date:	2015-12-12
Issue Date:	2016-08-18 13:41:08 (UTC+8)
Abstract:	This paper analyzes the incentives to petition for anti-dumping protection in the context of anti-dumping retaliation. We examine how anti-dumping retaliation may arise and whether such retaliation can be a threat that dissuades a domestic firm facing dumping from first petitioning for anti-dumping protection. The findings show that the anti-dumping duty imposed by the domestic country may result in dumping in the foreign country. Under such a circumstance, the foreign firm will petition for anti-dumping protection, and thus anti-dumping retaliation arises. We further show that firms facing foreign retaliation still have the incentive to first petition for anti-dumping protection. Finally, we investigate the welfare effects of a domestic anti-dumping duty in the context of a threat of foreign anti-dumping retaliation. We note that it may be socially desirable for the domestic country to implement an anti-dumping duty on a foreign dumping firm.
Relation:	2015台灣經濟學年會論文集
Appears in Collections:	[Graduate Institute & Department of Industrial Economics] Proceeding

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