Dumping in a Global World: Why Product Quality Matters

José Luis Moraga‐González and Jean-Marie Viaene
Authors registered in the RePEc Author Service: Jose Luis Moraga-Gonzalez

The World Economy, 2005, vol. 28, issue 5, 669-682

Abstract: Anti‐dumping actions are now the trade policy of choice of developing and transition economies. To understand why these economies have increasingly applied anti‐dumping laws, we build a simple theoretical model of vertical intra‐industry trade and investigate the strategic incentives of exporting firms to undertake dumping. We show that the definition of dumping matters. Based on a comparison of low‐quality and high‐quality prices, only unilateral dumping by the low‐quality firm obtains. By contrast, the standard WTO definition leads to either reciprocal or unilateral dumping by the high‐quality firm, depending on cross‐country differences in incomes, the height of tariff protection and on exchange rate changes.

Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1111/j.1467-9701.2005.00699.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:worlde:v:28:y:2005:i:5:p:669-682

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0378-5920

Access Statistics for this article

The World Economy is currently edited by David Greenaway

More articles in The World Economy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().