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Trade liberalization and incentives to implement antidumping protection

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  • Mukunoki, Hiroshi

Abstract

Reducing trade costs by reducing tariffs can be overturned if the tariff reductions induce governments to implement antidumping (AD) measures. Some empirical studies show that a commitment to reduce tariffs leads to more frequent use of AD protection. Other studies show that we rarely observe this substitution effect between tariffs and AD actions. This study theoretically explores the conditions under which a lower import tariff promotes AD actions. Results suggest that a lower tariff encourages AD actions in countries with a small market size. However, it can either encourage or discourage AD actions of countries with a large market size.

Suggested Citation

  • Mukunoki, Hiroshi, 2021. "Trade liberalization and incentives to implement antidumping protection," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 422-437.
    • Handle: RePEc:eee:reveco:v:72:y:2021:i:c:p:422-437
    DOI: 10.1016/j.iref.2020.11.015
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    References listed on IDEAS

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    Cited by:

    1. MUKUNOKI Hiroshi & OKOSHI Hirofumi, 2022. "Antidumping on Tax-induced Dumping," Discussion papers 22063, Research Institute of Economy, Trade and Industry (RIETI).

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    More about this item

    Keywords

    Trade liberalization; Antidumping; International oligopoly;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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