Abstract:
This paper has analyzed the economic and political justification,
trade impact and extent of antidumping measures initiated by Pakistan.
Screening models for anti-predatory behaviour, Herfindahl-Hireshmann
Index (HHI) for concentration and descriptive statistical measures are
used to test the antidumping (AD) behaviour. The results are consistent
with the earlier literature that AD duties have both a trade reduction
and diversion effect. It is evident from the results in half of the cases
studied that an economic rationale has been followed in the application
of AD duties in Pakistan. Although the number of AD cases is limited,
Pakistan has emerged as one of the intensive users of AD, relative to its
total import share. It is also evident from the fact that intensive use of
AD reduces trade and increases trade barriers, similarly, trade diversion
reduces the chances of trade reduction. The key message emerging from
this research is that trade diversion persists and in some cases trade
diversion is substantial and it offsets the effect of AD measures on named
countries to the benefit of non-named countries.
