This paper analyses unilateral trade liberalisation in a Cournot duopoly model where the domestic and the foreign firm have different marginal costs. There are three results in the paper. Firstly, with linear demand, it is shown that the domestic country will lose as a result of unilateral free...

This paper analyses the effect of antidumping (AD) duties on the pricing behaviour of exporters targeted with these measures. Using product and firm-level data for South Korea, the study provides evidence of increased export unit values and firms’ markups following the imposition of AD ad...

Large multi-product firms dominate international trade flows. This paper documents new facts about multi-product manufacturing exporters that are not easily reconciled with existing multi-product models. Using novel linked production and export data at the firm-product level, we find that the...

China’s importance for India as a trading partner has increased tremendously over the recent years. At the same time, China has become the main target of Indian antidumping measures with a number of measures that is unprecedented worldwide. This paper provides a detailed analysis of trade...

This paper uses a long panel of US 4-digit industries to analyse the impact of US Antidumping (AD) and Countervailing duties (CVD) on domestic producers' price-cost margins (PCM). In the analysis I account for selection bias in the imposition of AD/CVD as well as the intensity of the protection...

This paper evaluates the European Union’s antidumping (AD) policy from 1995-2009 with a special focus on the 2008-9 crisis. Combining product-level data on AD cases with detailed import data, we fail to find clear signs of a major trade policy change since the outbreak of the crisis. Our...

Trade policy in the European Union is characterized by an intensive use of Antidumping measures. In this paper we compare existing practices in the EU to WTO rules and to other WTO Members. Our comparative analysis reveals that the EU's "lesser-duty rule", which limits the magnitude of the...

Firms protected by antidumping measures do not unequivocally benefit from them. Antidumping protection benefits non-exporters active on the protected market by raising their domestic sales, but hurts exporters of similar products as the protected ones. Export sales of protected firms fall by...

Literature about strategic trade policy (Brender, Krugman, ...) has been concerned only with implicit internal strategic trade policies. We define them as policy tools targeting exclusively the behavior of national firms. In duopolistic terms, the goal is to move the reaction function of the...

We analyse trade in vertically differentiated goods between a rich and a poor country. In autarky two monopolists, selling a single product, operate in two countries which differ only for their per capita income. If trade opens, the firm operating in the poor country exports to the rich, giving...