Dumping and "material injury": A theoretical note
This paper looks at the notion of "material injury" when used as a condition for levying anti-dumping duties. Using a standard geometric model, we argue that the material injury suffered by import-substituting industries is only one side of the dumping coin; it is necessary also to consider the possible benefits that other stakeholders, including consumers and other domestic producers, may derive form lower import prices. The desicion whether to introduce anti-dumping duties should ideally be based on the net effect that dumping has on the social welfare of the broader community. © 2005 Economic Society of South Africa.