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On Optimal Dumping

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  • Lahiri, Sajal
  • Sheen, Jeffrey

Abstract

It is generally believed that, in the absence of retaliation, a country can enhance its welfare by dumping its product on another country. Antidumping policies, in the form of countervailing duties, are usually introduced by the dumped-upon countries. In this paper, the authors show that it may in fact be in the social interest of the dumping country to introduce a "voluntary dumping restraint" policy. It is also shown that such a policy can be enacted without the government having to forbid dumping by the private producers: an optimal production subsidy policy may be enough to preempt dumping. Copyright 1990 by Royal Economic Society.

Suggested Citation

  • Lahiri, Sajal & Sheen, Jeffrey, 1990. "On Optimal Dumping," Economic Journal, Royal Economic Society, vol. 100(400), pages 127-136, Supplemen.
    • Handle: RePEc:ecj:econjl:v:100:y:1990:i:400:p:127-36
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    Cited by:

    1. Khan, Nadeem, 1994. "Firm's behavior in the presence of antidumping laws," ISU General Staff Papers 1994010108000011487, Iowa State University, Department of Economics.
    2. Mario D. Tello, 2005. "Do Developing Countries Benefit from Antidumping Laws? An Assessment Based upon a Theoretical Dumping Model," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 2(1), pages 3-35, Julio-Dic.
    3. Alberto Gallegos David, 2019. "Optimal Reciprocal Dumping in a Managed Trade Regime," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 14(2), pages 189-202, Abril-Jun.

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