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A Welfare Evaluation of Anti-Dumping Rules

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  • Shy, O.

Abstract

The paper constructs a general equilibrium environment where firms find it profitable to set low prices abroad in order to 'dump' their products overseas. The paper conducts a welfare evaluation of implementing anti-dumping policies for two common interpretations of dumping activities: pricing below the cost of production and pricing abroad lower than at home. The major findings are: (a) in a world economy where firms play a price game in all markets, the anti-cost dumping policy is superior to the antiprice dumping policy for generating a welfare improvement for the injured country. (b) There is a special case where the imposition of anti-dumping rules can be welfare improving in all countries.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Shy, O., 1992. "A Welfare Evaluation of Anti-Dumping Rules," Papers 8-92, Tel Aviv.
    • Handle: RePEc:fth:teavfo:8-92
    as

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    References listed on IDEAS

    as
    1. Brander, James & Krugman, Paul, 1983. "A 'reciprocal dumping' model of international trade," Journal of International Economics, Elsevier, vol. 15(3-4), pages 313-321, November.
    2. Davies, Stephen W. & McGuinness, Anthony J., 1982. "Dumping at less than marginal cost," Journal of International Economics, Elsevier, vol. 12(1-2), pages 169-182, February.
    3. Das, Satya P., 1992. "Market uncertainties and cyclical dumping," European Economic Review, Elsevier, vol. 36(1), pages 71-82, January.
    4. Dick, Andrew R, 1991. "Learning by Doing and Dumping in the Semiconductor Industry," Journal of Law and Economics, University of Chicago Press, vol. 34(1), pages 133-159, April.
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