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2015 | Book

The Political Economy of Anti-dumping Protection

A Strategic Analysis

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About this book

This book deals with anti-dumping measures (AD) and investigates two questions: First, what country characteristics affect AD use and notably, do domestic political institutions have an effect? Second, (how) is the decision to impose a new AD measure affected by anticipation of trading partners’ potential retaliation? This book applies a strategic perspective to AD to address these questions, presenting a game-theoretic model together with an empirical test. The approach sheds light on the dynamics of interaction between trading partners and allows to capture selection processes which underpin the trade restrictions that can actually be observed. The book provides a fresh look on when and how trading powers apply antidumping measures, how this is shaped by strategic interaction and whether institutions do make a difference to the outcome. In a period in which the international trading system has to cope with numerous stresses such as an increased resort to administered protection largely by big emerging economies, this is a timely and important contribution.

Dr. Klaus Günter Deutsch, Managing Director, Research, Economic and Industrial Policy, German Federation of Industries

This book successfully integrates two research traditions in international politics – the traditional view that looks at domestic factors of anti-dumping policies and the strategic view that conditions the imposition of anti-dumping measures on the likely, retaliatory behavior of the trading partner. The result is an informative and constructive examination of anti-dumping protection and trade wars in the WTO.

Prof. Dr. Thomas Bräuninger, Chair of Political Economy, University of Mannheim, Germany

"The Political Economy of Anti-Dumping Protection - A Strategic Analysis" is a major contribution to the important and growing field international political economy. Starting with the “traditional” comparative institutional analysis, which focuses on the implications of democratic and non-democratic regimes for using anti-dumping measures in trade politics, the second part applies a strategic perspective on this type of sanctions uncovering the dynamic interactions between a challenging and challenged countries. For all those interested in understanding the logic of sanctions, the role of institutions, and in how to examine the implications of theoretical models for international political economy this book is a “must read".
Prof. Dr. Thomas König, Chair of Political Science II, University of Mannheim, Germany.

Table of Contents

Frontmatter
Chapter 1. Introduction
Abstract
In June 2013 the European Commission agreed to impose provisional anti-dumping duties (AD) on imports of Chinese solar panels. Reactions followed promptly: China openly contemplated duties on several iconic European products such as cars and wine and moved to impose AD duties on chemicals imported from the EU and opened an investigation for wine. A trade war seemed to loom large between Brussels and Beijing.
Patricia Wruuck
Chapter 2. Institutions and Trade Policy: A Review
Abstract
This analysis examines the impact of institutions on a particular trade policy instrument, i.e. anti-dumping. In doing so, it draws on a body of existing research both from political science and economics. This chapter provides an account of the relevant literature. It explains how the different lines of research interact to establish the theoretical and methodological background, points out remaining gaps in the literature and suggests how this analysis can contribute to address them.
Patricia Wruuck
Chapter 3. Winning Coalition Size and the Use of Anti-dumping
Abstract
This chapter examines the effect of institutions on the use of AD measures. While existing research points to a positive relationship between democratic institutions and trade openness in general as well as traditional tariffs (see Sect. 2.​1.​2), their impact has been tested less extensively for other specific trade policy instruments. This analysis looks at measures of contingent protection, notably AD.
Patricia Wruuck
Chapter 4. A Strategic Analysis of Anti-dumping
Abstract
This part of the analysis examines anti-dumping from a strategic perspective. In doing so, it differs from other studies on AD but, also from the previous chapter. First, it acknowledges that the imposed measures we observe result from a selection process and are therefore non-random. Out of the sample of AD investigations that are initiated, only a subset is pursued to the final stage and actually ends with the imposition of measures. The analysis takes a closer look at this process and proposes a strategic model of AD protection in the first part of this chapter. A two-stage game is developed featuring an investigating country that considers the imposition of a measure and a target that can choose to retaliate. Modelling this interaction clarifies how players condition their choices, the selection that results from this process and the different outcomes that are finally realised. With the two-stage model considering implementation and reaction, the analysis proposes a theoretical rationale in order to improve an understanding of the implementation of restrictions as well as their potential escalation into what may be referred to as trade wars.
Patricia Wruuck
Chapter 5. Concluding Remarks
Abstract
This research examines the use of AD measures. In doing so, it directly adds to research on AD in particular and trade barriers more generally. It also holds a number of implications with respect to wider issues in international relations and comparative political economy, such as the impact of institutional rules on policy choices, or cooperation and conflict among nations.
Patricia Wruuck
Backmatter
Metadata
Title
The Political Economy of Anti-dumping Protection
Author
Patricia Wruuck
Copyright Year
2015
Electronic ISBN
978-3-319-11224-4
Print ISBN
978-3-319-11223-7
DOI
https://doi.org/10.1007/978-3-319-11224-4