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The WTO has increased international disciplines on export policy, but there is still scope for the use of export subsidies and other measures to promote exports. Under macroeconomic and trade reforms of the last decade, many countries have reduced or eliminated import measures which operate as...
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anti-dumping laws. To that end, we investigate the strategic incentives of oligopolistic exporting firms to undertake … dumping in these economies. We show that dumping may be due to cross-country differences in income, to the extent of tariff … protection and to the exchange rate depreciations observed recently. Dumping may arise even if consumers exhaust all arbitrage …
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