Size matters! Who is bashing whom in trade war?
Huasheng Song and
Hylke Vandenbussche ()
International Review of Economics & Finance, 2016, vol. 45, issue C, 33-45
In this paper we present a dynamic model of trade wars in contingent protection. We find that “market size” matters in trade wars in the sense that countries are more likely to initiate anti-dumping cases against countries having sufficiently smaller home markets relative to their own, but less likely against countries with larger markets. We test this “selective-targeting hypothesis” using World Bank data of worldwide anti-dumping filings during the years 1995–2014, and find strong support for it. Thus, our study indicates the importance of relative market size in understanding recent patterns of anti-dumping filings and contingent protection in world trade.
Keywords: Reciprocal dumping; Anti-dumping; Market size (search for similar items in EconPapers)
JEL-codes: F13 F14 L13 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:45:y:2016:i:c:p:33-45
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