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Predatory Dumping

Author

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  • James C. Hartigan
Abstract
This is a model of predatory dumping that relies upon a capital market imperfection and an asymmetry in financial resources that favors the foreign firm. The capital market imperfection may prevent the home firm from issuing debt to defend itself against predation. The asymmetry in financial resources may enable the foreign firm to use foreign market profits to underwrite predation. In contrast to cyclical dumping models, predation occurs when foreign demand is high. A home antidumping law incompletely insulates the home firm from predatory dumping. The home antidumping law, however, tends to make predation correspond to cyclical dumping's characteristics.

Suggested Citation

  • James C. Hartigan, 1996. "Predatory Dumping," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 228-239, February.
    • Handle: RePEc:cje:issued:v:29:y:1996:i:1:p:228-39
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    Cited by:

    1. Russell Hillberry & Phillip McCalman, 2016. "Import dynamics and demands for protection," Canadian Journal of Economics, Canadian Economics Association, vol. 49(3), pages 1125-1152, August.
    2. Crowley, Meredith A., 2006. "Do safeguard tariffs and antidumping duties open or close technology gaps?," Journal of International Economics, Elsevier, vol. 68(2), pages 469-484, March.
    3. Stefan Lutz & James Gaisford & Shan (Victor) Jiang, 2009. "Are Antidumping Duties an Antidote for Predation?," ICER Working Papers 17-2009, ICER - International Centre for Economic Research.
    4. Meredith A. Crowley, 2007. "Cyclical dumping and U.S. antidumping protection: 1980-2001," Working Paper Series WP-07-21, Federal Reserve Bank of Chicago.
    5. James C. Hartigan, 2015. "It’s baaaack— zeroing, the US Department of Commerce, and US — Shrimp II (Viet Nam)," RSCAS Working Papers 2015/67, European University Institute.

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