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The Rationale of Antidumping Protection for the Steel Industry

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  • Klaus Stegemann

Abstract

Starting with a review of recent antidumping measures protecting the U.S. steel industry, the paper investigates the question as to whether antidumping measures are in the interest of the importing country as a whole. It is being argued that at times of cyclical excess capacity some form of intervention may be justified because domestic prices of import competing goods (temporarily) exceed the marginal social opportunity cost of domestic production. Antidumping measures, however, are not normally an optimal form of corrective intervention. The argument is developed with the aid of diagrams which take into account that imports generally are imperfect substitutes.

Suggested Citation

  • Klaus Stegemann, 1978. "The Rationale of Antidumping Protection for the Steel Industry," Working Paper 321, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:321
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