Dumping in Developing and Transition Economies
2004-11-16
Research Paper
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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
Classifications using
Journal of Economic Literature (JEL) Classification System
- P31 : Socialist Enterprises and Their Transitions
- F13 : Commercial Policy; Protection; Promotion; Trade Negotiations; International Organizations
- F12 : Models of Trade with Imperfect Competition and Scale Economies
Automatically Extracted Terms
- quality
- trade
- price
- country
- tariff
- market
- consumer
- product
- exchange
- equilibrium
- condition
- import
- exchange rate
- arbitrage
- policy
- export
- economy
- currency
- currency price
- result
