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False friends? Empirical evidence on trade policy substitution in regional trade agreements
Author(s) -
Silberberger Magdalene,
Stender Frederik
Publication year - 2018
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.12605
Subject(s) - tariff , margin (machine learning) , economics , substitution (logic) , international economics , economic integration , bilateral trade , regional integration , empirical evidence , regional trade , international trade , free trade , political science , computer science , philosophy , epistemology , programming language , machine learning , law , china
In this paper, we examine the interplay of regional economic integration and the use of bilateral antidumping ( AD ) measures. Our empirical analysis brings three central findings to light: (i) we find that regional trade agreements ( RTA s) generally reduce the likelihood of AD activity among integration partners; (ii) in addition, an improvement in the tariff treatment between trading partners—regardless of whether expressed as the directly faced tariff or as a tariff margin— generally leads to a lower likelihood of bilateral AD and (iii) regarding the interaction of both events, however, a reciprocally higher tariff margin between integration partners leads to a higher likelihood of bilateral AD than an equal tariff margin among non‐integration trading partners. The latter effect seems to be primarily driven by those RTA s with a participation of “South” countries.