Does preferential trade liberalization promote antidumping actions against nonmembers?
نویسنده
چکیده
In a three-country oligopoly model, this paper analyzes two countries’ decisions concerning antidumping (AD) action against each other and the relationship between those decisions and the countries’ RTAs with the third-country. An RTA intensifies product-market competition in the domestic market and lowers product prices. This effect widens the dumping margin of the foreign firm and narrows the dumping margin of the domestic firm. If the government is more concerned with domestic firm profit in its AD decision, the RTA may invoke the member’s AD action against the nonmember. If the governments attach a sufficiently high value on social welfare, however, the RTA may promote the nonmember’s AD action against the member. If the governments’ weight on the domestic firm’s profit is neither high nor low, an RTA may block the AD actions of both countries. If both countries have RTAs with the third country, both countries become less willing to use AD action.
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