Anticompetitive effects of antidumping policy in Mexico

Mendieta-Pacheco, Alfonso (2009) Anticompetitive effects of antidumping policy in Mexico. Doctoral thesis, University of East Anglia .

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Protectionism or retaliation is often argued as the motivation for the increasing use of anti-dumping measures by developing countries. In this research, I address other possible motives for the relentless use of these measures, such as collusion and trade deterrence. The main hypothesis is that price distortions generated by the introduction of anti-dumping policy serve as a departure point for the achievement of the collusive agreement. I develop a theoretical model in which a duopoly compete infinitely à la Bertrand in the importing market and anti-dumping policy serves as a mean to enforce and sustain the collusive outcome. Econometric analysis is performed in order to measure the impact of anti-dumping measures in the Mexican economy. Using a rich panel data of imports I investigate the trade restriction effects of anti-dumping, i.e. trade destruction and trade diversion. Testing for trade harassment effect is also achieved. In depth analysis of the debate between competition policy and anti-dumping policy reform is developed and some recommendations on the application of the competition policy framework are pursed in order to tackle the discriminatory use of the antidumping regime. It considers, however, the need of such an instrument in an environment where production in some sectors is characterized by advantageous conditions that can harm local industries. The research contributes to the literature on antidumping from a developing country point of view and is one of the few works that look in to the effects of antidumping policy in Mexico and puts emphasis on the domestic market structure of the petitioning country.

Item Type: Thesis (Doctoral)
Faculty \ School: Faculty of Social Sciences > School of Economics
Depositing User: Zoe White
Date Deposited: 26 Jun 2013 10:41
Last Modified: 24 Jul 2013 11:14

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