IDEAS home Printed from https://ideas.repec.org/a/wly/canjec/v34y2001i3p639-660.html
   My bibliography  Save this article

Anti‐dumping measures as a tool of protectionism: A mechanism design approach

Author

Listed:
  • Leonard K. Cheng
  • Larry D. Qiu
  • Kit Pong Wong

Abstract

In this paper we explore the design of optimal incentive‐compatible anti‐dumping (AD) measures. When the weight given to the domestic firm's profit in the government's objective function is relatively small, it is shown that no AD duty should be imposed if the foreign firm reports its own costs, but a constant AD duty should be imposed if the domestic firm reports the foreign firm's cost. When this weight is large, in either case of reporting the AD duty is a prohibitive tariff. The optimal AD measures are modified in the presence of a GATT/WTO constraint. JEL Classification: F12, F13 Les mesures anti‐dumping en tant qu'outil de protectionnisme: une approche en termes de construction de mécanismes. Ce mémoire examine la construction de mesures optimaales anti‐dumping (AD). Quandla valence des profits de la firme domestique est faible dans la fonction objective du gouvernement, on peut montrer qu'aucune mesure AD ne devrait être imposée si l'entreprise étrangère révèle ses propres coûts, mais qu'un droit AD constant devrait être imposé si c'est la firme domestique qui révèle les coûts de l'entreprise étrangère. Quand la valence des profits de la firme domestique est grande, quelle que soit la source de l'information, la mesure AD qui s'impose est un droit de douane prohibitif. Les mesures optimales doivent évidemment être modifiées pour prendre en compte la contrainte engendrée par l'existence des règles du GATT/OMC.

Suggested Citation

  • Leonard K. Cheng & Larry D. Qiu & Kit Pong Wong, 2001. "Anti‐dumping measures as a tool of protectionism: A mechanism design approach," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 34(3), pages 639-660, August.
    • Handle: RePEc:wly:canjec:v:34:y:2001:i:3:p:639-660
    DOI: 10.1111/0008-4085.00092
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/0008-4085.00092
    Download Restriction: no
    File URL: https://libkey.io/10.1111/0008-4085.00092?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xenia Matschke & Anja Schöttner, 2013. "Antidumping as Strategic Trade Policy under Asymmetric Information," Southern Economic Journal, John Wiley & Sons, vol. 80(1), pages 81-105, July.
    2. Patrice Cassagnard, 2009. "Antidumping, Social Quality of Goods and Smear Campaign," Working Papers hal-01880359, HAL.
    3. Qiu, Larry D., 2003. "Reply," Journal of International Economics, Elsevier, vol. 61(1), pages 247-248, October.
    4. Patrice CASSAGNARD, 2009. "Antidumping, Social Quality of Goods and Smear Campaign," Working Papers 10, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Nov 2009.
    5. repec:lic:licosd:20008 is not listed on IDEAS
    6. Patrice Cassagnard, 2009. "Antidumping, Social Quality of Goods and Smear Campaign," Working papers of CATT hal-01880359, HAL.
    7. Wu, Shih-Jye & Chang, Yang-Ming & Chen, Hung-Yi, 2014. "Antidumping duties and price undertakings: A welfare analysis," International Review of Economics & Finance, Elsevier, vol. 29(C), pages 97-107.
    8. Matloob Piracha, 2004. "Export Subsidies and Countervailing Duties Under Asymmetric Information," Studies in Economics 0410, School of Economics, University of Kent.
    9. Huynh, Pham Duy Anh, 2023. "Non-market economy status in anti-dumping investigations and proceedings: A case study of Vietnam," OSF Preprints esw4b, Center for Open Science.

    More about this item

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:canjec:v:34:y:2001:i:3:p:639-660. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1540-5982 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.