A Welfare Evaluation of Anti-dumping Rules

Oz Shy

No 275561, Foerder Institute for Economic Research Working Papers from Tel-Aviv University > Foerder Institute for Economic Research

Abstract: The paper constructs a general equilibrium environment where firms find it profitable to set low prices abroad in order to 'dump' their products overseas. The paper conducts a welfare evaluation of implementing anti-dumping policies for two common interpretations of dumping activities: pricing below the cost of production and pricing abroad lower than at home. The major findings are: (a) in a world economy where firms play a price game in all markets, the anti-cost dumping policy is superior to the antiprice dumping policy for generating a welfare improvement for the injured country. (b) There is a special case where the imposition of anti-dumping rules can be welfare improving in all countries.

Keywords: Financial; Economics (search for similar items in EconPapers)
Pages: 27
Date: 1992-05
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https://ageconsearch.umn.edu/record/275561/files/TEL-AVIV-FSWP-198.pdf (application/pdf)

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Working Paper: A Welfare Evaluation of Anti-Dumping Rules (1992)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:isfiwp:275561

DOI: 10.22004/ag.econ.275561

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