Antidumping as a signaling device under the WTO’s ADA non-disclosure clause

Arastou Khatibi () and Wouter Vergote
Additional contact information
Arastou Khatibi: Université catholique de Louvain

Review of World Economics (Weltwirtschaftliches Archiv), 2018, vol. 154, issue 4, No 1, 649-673

Abstract: Abstract Under the WTO Antidumping Agreement (ADA) non-disclosure clause, the investigating AD authority cannot disclose the confidential information it obtains. This paper analyzes how non-disclosure of confidential information leads the government to use the magnitude of the AD duty to signal this information, in casu the costs of the firm under investigation, to the domestic industry. We obtain two main results. First the AD authority sets lower tariffs compared to the full disclosure scenario because it has an incentive to signal that the foreign firm is relatively inefficient. Second, adhering to the non-disclosure clause leads to lower domestic welfare relative to the full disclosure scenario. On the other hand, prices are lower and global welfare is higher under the non-disclosure clause, thus providing an economic rationale for the WTO’s ADA non-disclosure clause.

Keywords: Antidumping; Non-disclosure clause; R&D; Signaling games (search for similar items in EconPapers)
JEL-codes: D82 F13 L13 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10290-018-0318-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:weltar:v:154:y:2018:i:4:d:10.1007_s10290-018-0318-4

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10290/PS2

DOI: 10.1007/s10290-018-0318-4

Access Statistics for this article

Review of World Economics (Weltwirtschaftliches Archiv) is currently edited by Paul Bergin, Holger Görg, Cédric Tille and Gerald Willmann

More articles in Review of World Economics (Weltwirtschaftliches Archiv) from Springer, Institut für Weltwirtschaft (Kiel Institute for the World Economy) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().