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Dumping in Developing and Transition Economies

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  • José Luis Moraga-González
  • Jean-Marie Viaene

Abstract

We build a simple theoretical model to understand why developing and transition economies have increasingly applied anti-dumping laws. To that end, we investigate the strategic incentives of oligopolistic exporting firms to undertake dumping in these economies. We show that dumping may be due to cross-country differences in income, to the extent of tariff protection and to the exchange rate depreciations observed recently. Dumping may arise even if consumers exhaust all arbitrage possibilities.

Suggested Citation

  • José Luis Moraga-González & Jean-Marie Viaene, 2004. "Dumping in Developing and Transition Economies," CESifo Working Paper Series 1356, CESifo.
    • Handle: RePEc:ces:ceswps:_1356
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    Cited by:

    1. José Daniel Reyes, 2013. "Trade Liberalization and the Adoption of Antidumping Laws in Developing Countries," Revista Equidad y Desarrollo, Universidad de la Salle, December.

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    More about this item

    Keywords

    dumping; exchange rate; optimal trade policy; product quality;
    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
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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