Innovation, Antidumping, and Retaliation

41 Pages Posted: 19 Jul 2010

See all articles by Kaz Miyagiwa

Kaz Miyagiwa

Emory University - Department of Economics; Osaka University - Institute of Social and Economic Research (ISER); Florida International University (FIU) - Department of Economics

Huasheng Song

Zhejiang University

Hylke Vandenbussche

Catholic University of Leuven (KUL), CEPR

Date Written: July 2010

Abstract

We develop a North-South model of reciprocal antidumping (AD). We find that AD wars are winnable for the Northern firm if the Southern market is sufficiently small relative to the North's. The South can avert AD war with the North by expanding the home market size. It may however trigger AD war by improving its R&D capability. The model yields results that are largely consistent with recent empirical findings that (1) AD is concentrated in R&D intensive industries, (2) AD actions are mostly between industrial and developing countries, and (3) developing countries use AD to retaliate against industrial countries.

Keywords: antidumping, intellectual property rights, R&D, reciprocal dumping

JEL Classification: F12, F13, L13

Suggested Citation

Miyagiwa, Kaz and Song, Huasheng and Vandenbussche, Hylke, Innovation, Antidumping, and Retaliation (July 2010). CEPR Discussion Paper No. DP7916. Available at SSRN: https://ssrn.com/abstract=1640992

Kaz Miyagiwa

Emory University - Department of Economics ( email )

1602 Fishburne Drive
Atlanta, GA 30322
United States

Osaka University - Institute of Social and Economic Research (ISER) ( email )

6-1 Mihogaoka
Ibaraki Osaka 567-0047
Japan

Florida International University (FIU) - Department of Economics ( email )

Miami, FL 33199
United States

Huasheng Song

Zhejiang University ( email )

38 Zheda Road
Hangzhou, Zhejiang 310058
China

Hylke Vandenbussche

Catholic University of Leuven (KUL), CEPR ( email )

Faculty of Economics
Naamsestraat 69
B-3000 Leuven, 3000
Belgium
+32 16 326 920 (Phone)
+32 16 326 732 (Fax)

HOME PAGE: https://www.sites.google.com/site/vandenbusschehylke/home-1

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