Trade Effects of Anti-dumping: Who benefits

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

This article assesses the trade effects of anti-dumping (AD) duties levied on 177 (8-digit) products by India during the period 1994 to June 2001. A panel regression has been applied to quantify the effects of AD actions on import volumes, values, and prices. It finds that the investigation effects of AD actions are not substantial. The imposition of AD duties restrains trade (both volume and value) and raises import prices. While trade effects start dissipating in subsequent years, import prices from both named and unnamed countries rise significantly in the post-duty years. There is little evidence that trade is diverted from unnamed to named countries. Thus, the domestic industry is benefited due to the price rise. Their financial position improves at the expense of both consumers and downstream industries. Since anti-dumping is an expensive form of protection, only large and dominant producers in concentrated industries emerge as the major beneficiaries of this protection. Finally, the developing trade partner countries suffer significant import losses when named. However, the trade destruction effect is insignificant for developed countries. Even though the unit value of their imports rises, there is no evidence of decline in trade from these countries.
Original languageEnglish
JournalInternational Trade Journal
Volume25
Issue number1
Pages (from-to)112-158
ISSN0885-3908
DOIs
Publication statusPublished - 2011
Externally publishedYes

Cite this

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title = "Trade Effects of Anti-dumping: Who benefits",
abstract = "This article assesses the trade effects of anti-dumping (AD) duties levied on 177 (8-digit) products by India during the period 1994 to June 2001. A panel regression has been applied to quantify the effects of AD actions on import volumes, values, and prices. It finds that the investigation effects of AD actions are not substantial. The imposition of AD duties restrains trade (both volume and value) and raises import prices. While trade effects start dissipating in subsequent years, import prices from both named and unnamed countries rise significantly in the post-duty years. There is little evidence that trade is diverted from unnamed to named countries. Thus, the domestic industry is benefited due to the price rise. Their financial position improves at the expense of both consumers and downstream industries. Since anti-dumping is an expensive form of protection, only large and dominant producers in concentrated industries emerge as the major beneficiaries of this protection. Finally, the developing trade partner countries suffer significant import losses when named. However, the trade destruction effect is insignificant for developed countries. Even though the unit value of their imports rises, there is no evidence of decline in trade from these countries.",
keywords = "Anti-dumping Actions, Strategic Behavior, Trade Effects, Investigation Effect, Duty Effect, Import Sources",
author = "Aradhna Aggarwal",
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language = "English",
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pages = "112--158",
journal = "International Trade Journal",
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Trade Effects of Anti-dumping: Who benefits. / Aggarwal, Aradhna.

In: International Trade Journal, Vol. 25, No. 1, 2011, p. 112-158.

Research output: Contribution to journalJournal articleResearchpeer-review

TY - JOUR

T1 - Trade Effects of Anti-dumping: Who benefits

AU - Aggarwal, Aradhna

PY - 2011

Y1 - 2011

N2 - This article assesses the trade effects of anti-dumping (AD) duties levied on 177 (8-digit) products by India during the period 1994 to June 2001. A panel regression has been applied to quantify the effects of AD actions on import volumes, values, and prices. It finds that the investigation effects of AD actions are not substantial. The imposition of AD duties restrains trade (both volume and value) and raises import prices. While trade effects start dissipating in subsequent years, import prices from both named and unnamed countries rise significantly in the post-duty years. There is little evidence that trade is diverted from unnamed to named countries. Thus, the domestic industry is benefited due to the price rise. Their financial position improves at the expense of both consumers and downstream industries. Since anti-dumping is an expensive form of protection, only large and dominant producers in concentrated industries emerge as the major beneficiaries of this protection. Finally, the developing trade partner countries suffer significant import losses when named. However, the trade destruction effect is insignificant for developed countries. Even though the unit value of their imports rises, there is no evidence of decline in trade from these countries.

AB - This article assesses the trade effects of anti-dumping (AD) duties levied on 177 (8-digit) products by India during the period 1994 to June 2001. A panel regression has been applied to quantify the effects of AD actions on import volumes, values, and prices. It finds that the investigation effects of AD actions are not substantial. The imposition of AD duties restrains trade (both volume and value) and raises import prices. While trade effects start dissipating in subsequent years, import prices from both named and unnamed countries rise significantly in the post-duty years. There is little evidence that trade is diverted from unnamed to named countries. Thus, the domestic industry is benefited due to the price rise. Their financial position improves at the expense of both consumers and downstream industries. Since anti-dumping is an expensive form of protection, only large and dominant producers in concentrated industries emerge as the major beneficiaries of this protection. Finally, the developing trade partner countries suffer significant import losses when named. However, the trade destruction effect is insignificant for developed countries. Even though the unit value of their imports rises, there is no evidence of decline in trade from these countries.

KW - Anti-dumping Actions

KW - Strategic Behavior

KW - Trade Effects

KW - Investigation Effect

KW - Duty Effect

KW - Import Sources

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SN - 0885-3908

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