Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86308
Authors: 
Moraga-Gonzalez, Jose Luis
Viaene, Jean-Marie
Year of Publication: 
2004
Series/Report no.: 
Tinbergen Institute Discussion Paper 04-128/2
Abstract: 
Anti-dumping actions are now the trade policy of choice of developing and transition economies. To understand why these economies have increasingly applied anti-dumping laws, we build a simple theoretical model of vertical intra-industry trade and investigate the strategic incentives of exporting firms to undertake dumping. We show that the definition of dumping matters. Based on a comparison of low-quality and high-quality prices, only unilateral dumping by the low-quality firm obtains. By contrast, the standard WTO definition leads to either reciprocal or unilateral dumping by the high-quality firm, depending on cross-country differences in incomes, the height of tariff protection and on exchange rate changes.
Subjects: 
Dumping
Exchange Rate
Injury
Product Quality
Tariffs
JEL: 
F12
F13
P31
Document Type: 
Working Paper

Files in This Item:
File
Size
661.5 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.