Do Antidumping Measures Increase Market Power? Evidence From Latin American Countries

Lucas Lourenco, Douglas Silveira, Glauco Oliveira and Claudio Vasconcelos

The International Trade Journal, 2023, vol. 37, issue 5, 454-480

Abstract: This article provides evidence regarding the adverse effects of antidumping measures on competitive market strategies. Our empirical model consists of estimating the Lerner index as a mark-up measure. To reach our goal, we use the Orbis database, with firm-level data between 2006 and 2014. On average, our results suggest a positive relationship between antidumping barriers and the increase in firms’ market power. Its magnitude is larger for Latin America when compared to other emerging economies. Moreover, the effects on market power persist in the long run. Depending on the set of evaluated countries, it becomes null in the short run.

Date: 2023
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DOI: 10.1080/08853908.2021.1992320

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