The Aftermath of Antidumping: Are Temporary Trade Barriers Really Temporary?

Abstract

This paper analyses the long-term impact of anti-dumping (AD) measures. In line with previous studies, we document a trade-destroying effect of AD measures on the imports from targeted countries while such measures are in force. However, in addition and new to this literature, we document a lasting negative effect which survives well beyond the revocation of the AD measures. In particular, while we document a shortlived bounce back of imports following immediately from the revocation of a previously installed AD measure, bilateral trade may not fully recover to its pre-intervention level.

Keywords: Anti-dumping, non-tariff barriers, temporary trade barriers, trade destruction, panel data, hysteresis

JEL Classification: F13; F14; D21