The Trade Effects of Indian Antidumping Actions

Antidumping (AD) has emerged as the most widespread policy impediment to trade in the last 25 years. One of the surprise proliferators of AD in the lesser developed world has been India, which has filed an outstanding number of 285 cases between 1992 and 2002. In this paper, I study empirically the effect of Indian AD cases on trade flows from other countries. I also look at the effect of AD cases on trade diversion from countries subject to or "named" in AD investigations to non-subject or "non-named" countries and conclude that Indian AD policy is effective. I use a unique dataset combining AD data from the World Trade Organization with trade data from Comtrade. The empirical model is estimated via the Arellano-Bond procedure.