Who Benefits from Antidumping and Countervailing? An Analysis Using a Computable Partial Equilibrium Model

Abstract

ABSTRACT The world economy has witnessed a rise use of antidumping (AD) and countervailing (CV) duties in recent years. Using a computable partial equilibrium model, this article simulates the economic and welfare impacts of the US’s AD/CV duties on photovoltaic (PV) products imported from China and Taiwan in 2015. The result shows that the AD/CV duties have significant trade destruction and trade diversion effects, relatively moderate trade deflection and depression effects. In the context of globalization, the AD/CV duties have limited remedial effect on the US PV industry, but the United States bears the biggest welfare loss for its AD/CV duties.