Dumping in Developing and Transition Economies
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.
|Keywords||dumping, exchange rate, optimal trade policy, product quality|
Moraga-Gonzalez, J.L., & Viaene, J.M.A.. (2004). Dumping in Developing and Transition Economies (No. TI 04-125/2). Retrieved from http://hdl.handle.net/1765/6609