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Accounting for Stylised Facts about Recent Anti‐dumping: Retaliation and Innovation
Author(s) -
Miyagiwa Kaz,
Song Huasheng,
Vandenbussche Hylke
Publication year - 2016
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12371
Subject(s) - dumping , enforcement , economics , intellectual property , developing country , work (physics) , international trade , international economics , economic growth , political science , law , mechanical engineering , engineering
Recent work has found certain stylised facts about anti‐dumping ( AD ) actions. (i) AD actions are mostly between industrial and developing countries; (ii) developing countries use AD to retaliate against industrial countries; and (iii) AD is concentrated in R&D‐intensive industries. This study develops an analytical framework that can account for these empirical findings. The model suggests that market expansions and/or improvement in R&D capability in the South are essential in avoiding AD wars with the North. Interestingly, stricter enforcement of intellectual property rights in the South has little effect on stopping AD wars between the North and the South.