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Import Demand Elasticity and Exporter Response to Anti-Dumping Duties

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  • Dmitri Nizovtsev
  • Alexandre Skiba

Abstract

This article investigates exporting firms’ behavior following the imposition of anti-dumping (AD) duties. AD duties tend to increase the prices of imported goods via a mechanism different from any other trade barrier because the AD duty size is endogenously dependent on import prices. Our model accounts for this feature and demonstrates that exporters are more likely to adjust their price upward when they face a less elastic demand. The theoretical predictions are supported empirically by relating product-level U.S. import demand elasticities and exporting firms’ reactions to duties inferred from a dataset on U.S. AD investigations from 1980 to 1995.

Suggested Citation

  • Dmitri Nizovtsev & Alexandre Skiba, 2016. "Import Demand Elasticity and Exporter Response to Anti-Dumping Duties," The International Trade Journal, Taylor & Francis Journals, vol. 30(2), pages 83-114, March.
    • Handle: RePEc:taf:uitjxx:v:30:y:2016:i:2:p:83-114
    DOI: 10.1080/08853908.2015.1116418
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