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This paper analyses the effect of antidumping (AD) duties on the pricing behaviour of exporters targeted with these …, unlike other import tariffs, AD duties are not absorbed by exporters. The results on firms' average markups also suggest that …
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We develop a simple two-region, cobweb-type dynamic equilibrium model to demonstrate the existence of optimal trade barriers. A pure comparative statics analysis of our model suggests that a reduction of trade barriers always enhances welfare. However, taking a dynamic perspective reveals that...
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