The chilling trade effects of antidumping proliferation

Vandenbussche, Hylke and Zanardi, Maurizio (2010) The chilling trade effects of antidumping proliferation. European Economic Review, 54 (6). pp. 760-777. ISSN 0014-2921

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Abstract

Advocates of antidumping (AD) laws downplay their negative effects by arguing that the trade flows that are subject to AD are small and their distortions negligible. But while the adverse effect of AD on product-level trade has long been established, the question remains whether there are trade effects at the aggregate level. The recent proliferation wave of AD laws and their use provides us with a unique policy change to estimate the true trade effects of adopting and enforcing AD laws. For this purpose, we estimate the effect of AD on bilateral trade flows between the “new adopters” of AD laws and their trade partners. Using a gravity model of annual observations (1980–2000) our estimates show that AD has trade chilling effects on aggregate import volumes but the impacts are heterogeneous across sectors. We find that new tough users experience a chilling of their aggregate imports of 14 billion US$ a year (or 5.9%) as a result of AD measures. For some countries like Mexico and India, the dampening effects of AD laws on trade flows are found to substantially offset the increase in trade volumes derived from trade liberalization.

Item Type:
Journal Article
Journal or Publication Title:
European Economic Review
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/2000/2002
Subjects:
ID Code:
64764
Deposited By:
Deposited On:
24 May 2013 10:24
Refereed?:
Yes
Published?:
Published
Last Modified:
29 Jul 2020 11:07