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Anti-Dumping with Heterogeneous Firms: New Protectionism for the New-New Trade Theory

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  • Wp 08-24

    Final published version, 318 KB, PDF document

  • Christian Gormsen Schmidt, Denmark
This paper analyzes anti­-dumping (AD) policies in a two-country model with heterogeneous firms in monopolistic competition. Effective AD legislation in one country imposes a no-dumping condition on firms exporting from the other country, altering their pricing both domestically and abroad. Some firms with intermediate productivities cease export activity, and entry shifts towards the AD protected country, which has now become relatively more attractive. Protecting firms with AD therefore increases the number of firms entering and eventually increases competition, and the consumers enjoy welfare gains. In the country without AD legislation, there is a welfare loss due to fewer entrants.
Original languageEnglish
Place of publicationAarhus
PublisherAarhus School of Business, Aarhus University, Department of Economics
Number of pages32
ISBN (Print)9788778823892
ISBN (Electronic)9788778823908
Publication statusPublished - 2008

    Research areas

  • Trade policy, Anti-dumping, Monopolistic competition, Heterogeneous firms

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