Journal
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
Volume 72, Issue -, Pages 422-437Publisher
ELSEVIER
DOI: 10.1016/j.iref.2020.11.015
Keywords
Trade liberalization; Antidumping; International oligopoly
Categories
Funding
- JSPS of KAKENHI [JP16H03620, JP17K03706, JP20K01659]
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Lower import tariffs may encourage AD actions in countries with small market size, but the impact is varied in countries with large market size.
Reducing trade costs by reducing tariffs can be overturned if the tariff reductions induce governments to implement antidumping (AD) measures. Some empirical studies show that a commitment to reduce tariffs leads to more frequent use of AD protection. Other studies show that we rarely observe this substitution effect between tariffs and AD actions. This study theoretically explores the conditions under which a lower import tariff promotes AD actions. Results suggest that a lower tariff encourages AD actions in countries with a small market size. However, it can either encourage or discourage AD actions of countries with a large market size.
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