Antidumping and Tariff Jumping Divestment

This paper explores the relationship between the closure of “antidumping jumping” manufacturing plants and the repeal of antidumping measures. Of 67 identified japanese “antidumping jumping” production lines in the eu in 1990 only 31 remained in operation in 1999. Analysis of the probability of divestment for 209 japanese plants in the broadly defined electronics industry shows that japanese plants of manufacturing products for which antidumping duties had been repealed are significantly and substantially more likely to be divested. The results suggest that the potential positive effects of antidumping duties on host economies by inducing inward investment are in many cases short-lived and easily overestimated. Jel no. F23, f13, l11.