Dumping in Developing and Transition Economies
23 Pages Posted: 3 Jan 2005
Date Written: December 2004
We build a simple theoretical model to understand why developing and transition economies have increasingly applied anti-dumping laws. To that end, we investigate the strategic incentives of oligopolistic exporting firms to undertake dumping in these economies. We show that dumping may be due to cross-country differences in income, to the extent of tariff protection and to the exchange rate depreciations observed recently. Dumping may arise even if consumers exhaust all arbitrage possibilities.
JEL Classification: F12, F13, P31
Suggested Citation: Suggested Citation