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Economic rationale, trade impact and extent of antidumping – case study of Pakistan

Syed Hasanat Shah and Ahmed Nawaz Hakro

MPRA Paper from University Library of Munich, Germany

Abstract: This paper has analyzed the economic and political justification, trade impact and extent of antidumping measures initiated by Pakistan. Screening models for anti-predatory behaviour, Herfindahl-Hireshmann Index (HHI) for concentration and descriptive statistical measures used to testify the Anti dumping (AD) behaviour, determinants and spread impact. The results are consistent with the earlier literature that AD duties create trade reduction and diversion. It is evident from the results in half of the cases studied that an economic rationale has been followed in the application of AD (Anti-dumping) duties in Pakistan. Although the number of AD cases is limited, Pakistan has emerged as one of the intensive users of AD, relative to its total import share. It is also evident from the fact that intensive use of AD reduces trade and increases trade barriers, similarly, trade diversion reduces the chances of trade reduction. The key message emerging from this research is that trade diversion persists and in some cases trade diversion is substantial and it offsets the effect of AD measures on named countries to the benefit of non-named countries.

Keywords: Antidumping; Trade diversion; Economic rationale (search for similar items in EconPapers)
JEL-codes: D21 F13 F14 (search for similar items in EconPapers)
Date: 2006, Revised 2007
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Published in The Lahore Journal of Economics 1.12(2007): pp. 79-98

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