Economics at your fingertips  

Anti-Dumping, Competitiveness and Welfare: A Study with Special Reference to India

Dibyendu Maiti ()
Additional contact information
Dibyendu Maiti: Department of Economics, Delhi School of Economics

Indian Economic Review, 2016, vol. 51, issue 1, 147-180

Abstract: While the traditional trade barriers have been declining substantially all over the world, the usage of unconventional trade practices are thriving. Anti-dumping (AD) initiative has appeared as a major one. The paper shows that while the foreign firm has a greater incentive of importing than Foreign Direct Investment (FDI) with tariff reductions, the domestic welfare improves in the opposite case. Though such incentive tends to decline a bit when the domestic economy faces unions, especially a centralized one, greater welfare under FDI encourages the domestic economy in taking anti-dumping initiatives by raising strategic trade cost deliberately. However, if the cost of establishing FDI tends to rise along with such strategic trade cost, FDI possibility would drop. So, if ADjumping FDI does not take place in response to trade cost reduction, the welfare could decline due to a fall of foreign competition in the domestic economy. Empirically, it is observed that India has been the highest initiator of anti-dumping in the world during 1995-2010. We find that the mark-up of AD intensive industries has been significantly high. This suggests that AD jumping FDI has not been sufficient enough to compensate the required gain from foreign competition that would have occurred with imports in the absence of AD initiatives.

Keywords: Anti-Dumping; FDI; Tariff Jumping (search for similar items in EconPapers)
JEL-codes: F13 F15 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:

Ordering information: This journal article can be ordered from

Access Statistics for this article

Indian Economic Review is currently edited by Pami Dua (Editor) & Ram Singh (Associate Editor) and Sunil Kanwar

More articles in Indian Economic Review from Department of Economics, Delhi School of Economics University of Delhi, Delhi 110 007. Contact information at EDIRC.
Bibliographic data for series maintained by Pami Dua ().

Page updated 2020-06-26
Handle: RePEc:dse:indecr:0116