Anti-dumping protection, price undertaking and product innovation

Kao, Kuo-Feng; Peng, Cheng-Hau

doi:10.1016/j.iref.2015.09.006

Cited by 17 publications

(5 citation statements)

References 26 publications

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“…constrained) firm. Under the assumption of bilateral AD actions, Kao and Peng (2016) show that where there is no tolerable dumping margin, the two firms will increase their product R&D investments. However, their result is reversed if the tolerable dumping margins are set at the free trade level.…”

Section: An Extension To Randd In the Pv Sectormentioning

confidence: 99%

Antidumping and Feed-In Tariffs as Good Buddies? Modeling the EU-China Solar Panel Dispute

Bougette¹,

Charlier²

2018

The Energy Journal

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The paper analyzes the interactions between trade and renewable energy policies based on the EU-China solar panel dispute which is the most significant antidumping (AD) complaint in Europe. We build a price competition duopoly model with differentiated products and intra-industry trade in photovoltaic (PV) equipment. We show that an optimal antidumping duty always increases with the feed-in tariff (FIT) program set in the home country. An appropriate antidumping duty-nullifying the dumping margin-decreases with the FIT program. We show that optimal FIT increases with the AD duty. Therefore, trade and renewable energy optimal policies may complement one another. Lastly, we introduce R&D activities in the PV sector, and international spillovers. We show that R&D makes the optimal FIT lower and increases the dumping margin. These effects are reinforced by technological spillovers.

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Section: An Extension To Randd In the Pv Sectormentioning

confidence: 99%

Antidumping and Feed-In Tariffs as Good Buddies? Modeling the EU-China Solar Panel Dispute

Bougette¹,

Charlier²

2018

The Energy Journal

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“…Regarding the research related to UTE on GTI, the literature stands on the perspective of enterprises to study the impact of UTE such as anti-dumping on enterprises' GTI. Kao (2005) and Gao (2016), through establishing a bilateral trade model, found that when firms are subjected to anti-dumping investigations, they usually invest more in R&D to improve product competitiveness and thus reduce the negative impact of UTE on their operations [16,17]. Lin (2006), by studying the data of firms listed in China, found that a decrease in tariffs reduces firms' willingness to innovate, while an increase in tariffs pushes firms to engage in GTI [18].…”

Section: Ute and Gtimentioning

confidence: 99%

“…On the one hand, UTE will bring targeted tariffs and fines, which will reduce the market competitiveness of Chinese products and affect the income and profits of Chinese export enterprises, thus adversely affecting the sources of green innovation funds for enterprises and making it difficult for some enterprises to bear. This can lead to a "discouraging effect" on green innovation [17]. On the other hand, being subjected to a regional trade case investigation can hurt the income and profits of Chinese exporters.…”

Section: Mechanisms Of Ute' Influence On Enterprises' Gtimentioning

confidence: 99%

Does Uncertainty of Trade Environment Promote Green Technological Innovation? Empirical Evidence from China

Sun

Zhang

et al. 2022

Sustainability

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In recent years, the international environment has changed rapidly, and the uncertainty of the trade environment faced by enterprises has dramatically increased. As a major participant in world trade, the uncertainty of the trade environment has significantly impacted the daily business activities and various behaviors of Chinese manufacturing enterprises. Green technology innovation has also become an important tool for enterprises to enhance their sustainable development ability and improve their ability to cope with changes in the external environment. The change in the trade environment will affect the business development of enterprises. To face the change in the trade environment, enterprises often choose to improve their technology level and increase the added value of their products. In the context of sustainable development, green technology innovation has higher technical strength and is more in line with the requirements of international development, which is strong support for enterprises to cope with the change in the trade environment. However, the current literature is scant on the association between trade uncertainty and green innovation. In this context, this study used the data of Chinese manufacturing listed companies from 2011 to 2020 to empirically analyze the relationship between trade environment uncertainty (UTE) and green technology innovation (GTI) using panel data estimation methods and further explore the related heterogeneity and its impact on sustainable development. The results show that: (1) UTE has a significant positive impact on the GTI of enterprises, and the robustness test verifies these findings. Different kinds of UTE have different effects on enterprise GTI. UTE also has a positive impact on the independent GTI of enterprises. (2) Compared with non-state-owned enterprises, the GTI of state-owned enterprises is more vulnerable to the positive impact of UTE. (3) UTE significantly and negatively impacts enterprises’ business activities and further challenges enterprises’ sustainable development. However, the enterprise’s GTI behavior, especially the substantial GTI, helps mitigate the adverse impact of UTE on the company’s sustainable development. Finally, this paper provides targeted suggestions for enterprises to better cope with UTE and improve their sustainable development capabilities.

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“…These authors study the effects of anti-dumping systems on prices, profits, government revenue, industry protection, and social welfare in a two-country framework and establish conditions under which one tool dominates the other for a given criterion. Kao and Peng [2] examine how price undertaking policies affect firms' product investments by showing that the dumping margin declines when the products become more differentiated. By using an intra-industry trade model they establish that under bilateral anti-dumping actions, the aggregate product R&D investment either increases or decreases, depending on the tolerable dumping margin set by the governments.…”

Section: Literature Reviewmentioning

confidence: 99%

“…As a result of the constantly increasing scale of international flows of goods and services, the problem of trade surplus and deficit becomes eminent, causing frequent occurrence of international trade frictions. As a consequence, the operational problem related to balancing trades has attracted more and more attentions of various national governments and become a hot research topic in the world of trade liberalization [2] [3] [4]. In recent years, there has been a dramatic increase in the number of industrial countries that face the problem of balancing trade.…”

Section: Introductionmentioning

confidence: 99%

A Game Analysis of Trade Dumping and Antidumping

Zhao¹,

Forrest²,

Jirasakuldech³

2018

TEL

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This paper develops game theoretical models to study the interactive, competitive plays and relevant decision making regarding the dumping and antidumping actions between an importing nation and an exporting nation. The latter considers potentially dumping its product in the domestic market of the former, while the former attempts to protect its market and its domestic firms from exiting the market by implementing necessary trading strategies. Understanding how to deal with potential intruders, when to take actions, and what appropriate actions to take under different sets of conditions is very crucial both theoretically and practically, because countermeasures may or may not be effective depending on what conditions one is constrained with. The theoretical framework, established in this paper, will provide a better understanding of anti-dumping policies and their implications for regulators, policy makers, managers, and academicians, while the results developed herein can be readily employed in real-life scenarios, making this work practically useful for understanding how international trade conflicts could be handled effectively.

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Anti-dumping protection, price undertaking and product innovation

Cited by 17 publications

References 26 publications

Antidumping and Feed-In Tariffs as Good Buddies? Modeling the EU-China Solar Panel Dispute

Antidumping and Feed-In Tariffs as Good Buddies? Modeling the EU-China Solar Panel Dispute

Does Uncertainty of Trade Environment Promote Green Technological Innovation? Empirical Evidence from China

A Game Analysis of Trade Dumping and Antidumping

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