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Title: Innovation, antidumping, and retaliation

Author(s): Kaz Miyagiwa, Huasheng Song and Hylke Vandenbussche

Publication Date: July 2010

Keyword(s): antidumping, intellectual property rights, R&D and reciprocal dumping

Programme Area(s): International Trade and Regional Economics

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&Dintensive industries, (2) AD actions are mostly between industrial and developing countries, and (3) developing countries use AD to retaliate against industrial countries.

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Bibliographic Reference

Miyagiwa, K, Song, H and Vandenbussche, H. 2010. 'Innovation, antidumping, and retaliation'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=7916