The Effect Of Antidumping Measures In Imperfect Competition Market

Since the last decade of 20th century, the use of AD became more popular, and the quantity of antidumping cases in international trade increased sharply. Most of these cases occurred in typical imperfect competition industry, such as base metals industry, chemical industry, and so on. With the tools of industrial organization, this paper analyzes the effect of AD in imperfect competition industry, through the study on the competition and gambling among the enterprises in the market of import country.In the imperfect competition market of import country, with the restriction of product capacity and asymmetric information, dumping is a product capacity competition, rather than a kind of price competition. Because dumping could arouse the counteraction of non-dumping enterprises: expanding their product capacity, the situation of import country's industry would deteriorate. Although AD can restrain dumping, the counteraction of non-dumping enterprises aim at dumping behavior would never be offset by it. Therefore, AD cannot set off all negative effect of dumping, and can't supply a sufficient protection for industry of import country.At the mean time, there are many problems in the use of AD, which result in inefficiency of AD. AD maybe only smooth away rivals for new dumping enterprises, and the industry of import country would encounter another dumping and another hurt.This paper try to draw such a conclusion that, in imperfect competition market, the protection of AD may be not efficient as it has been anticipated. When the government of import country tries to protect its domestic industry with AD, the above conclusion should be taken into consideration.