The byrd amendment as facilitating a tacit international business collusion

Arbeitspapier

We analyze the effect of the Byrd Amendment, which amended the US Tariff Act of 1930 to allow revenue from antidumping duties to be distributed to domestic import-competing firms. In an international duopoly framework it is shown that it urges the home firm to restrict output so that the foreign firm increases output and that revenue from the duties increases. Consequently, not only the home firm but also the foreign firm can be better off while only consumers are worse off. Home total surplus increases if the foreign rival firm is much more efficient, but otherwise decreases.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ISER Discussion Paper ; No. 647

Classification and Topics

• Classification: Wirtschaft ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Trade Policy; International Trade Organizations
• Subject: Byrd Amendment ; Continued Dumping and Subsidy Offset Act (CDSOA) ; Antidumping duty ; Tariff-revenue distribution ; Außenwirtschaftspolitik ; Protektionismus ; Dumping ; Theorie ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ogawa, Yoshitomo ; Ono, Yoshiyasu
• Event: Veröffentlichung
• (who): Osaka University, Institute of Social and Economic Research (ISER)
• (where): Osaka
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/92817
• Last update: 10.03.2025, 11:44 AM CET