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EC Trade Protection Law: Produmping or Antidumping?

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  • Schuknecht, Ludger
  • Stephan, Joerg

Abstract

This paper argues that the anticipation of protection can have a 'stimulating effect on exports' instead of the commonly claimed effect of harassment. If protection serves market cartelization by fixing export quantities or prices, exporters may have an incentive to increase their sales abroad in order to secure a large share of the expected rent, which is brought about by the anticipated import restriction. This may even result in sales below marginal costs or dumping. 'The effect of the protectionist threat may then be the reverse of what is intended: it can raise the speed of import penetration and it can provoke dumping.' A formal model and a supportive institutional analysis of EC trade protection is supplemented by preliminary empirical evidence. Copyright 1994 by Kluwer Academic Publishers

Suggested Citation

  • Schuknecht, Ludger & Stephan, Joerg, 1994. "EC Trade Protection Law: Produmping or Antidumping?," Public Choice, Springer, vol. 80(1-2), pages 143-156, July.
    • Handle: RePEc:kap:pubcho:v:80:y:1994:i:1-2:p:143-56
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    References listed on IDEAS

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    1. Michel Kostecki, 1987. "Export-restraint Arrangements and Trade Liberalization," The World Economy, Wiley Blackwell, vol. 10(4), pages 425-453, December.
    2. Michael P. Leidy & Bernard M. Hoekman, 1991. "Spurious Injury As Indirect Rent Seeking: Free Trade Under The Prospect Of Protection," Economics and Politics, Wiley Blackwell, vol. 3(2), pages 111-137, July.
    3. Arye L. Hillman & Heinrich W. Ursprung, 2008. "Domestic Politics, Foreign Interests, and International Trade Policy," Springer Books, in: Roger D. Congleton & Kai A. Konrad & Arye L. Hillman (ed.), 40 Years of Research on Rent Seeking 2, pages 113-129, Springer.
    4. L. Alan Winters, 1994. "Import Surveillance as a Strategic Trade Policy," NBER Chapters, in: Empirical Studies of Strategic Trade Policy, pages 211-234, National Bureau of Economic Research, Inc.
    5. Klaus Stegemann, 1991. "The International Regulation of Dumping: Protection Made Too Easy," The World Economy, Wiley Blackwell, vol. 14(4), pages 375-405, December.
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    Cited by:

    1. Nelson, Douglas, 2006. "The political economy of antidumping: A survey," European Journal of Political Economy, Elsevier, vol. 22(3), pages 554-590, September.

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