Antidumping jumping: Reciprocal antidumping and industrial location

Antidumping policies are often justified as legitimate actions by governments in their efforts to protect domestic producers from unfair foreign competition. The authors investigate the impact of antidumping rules on firms' production decisions as to how much and where to produce. Antidumping measures may have unforeseen effects if they induce direct foreign investment and consequently increase domestic competition. The authors therefore focus on location choice and consider the strategies of national governments attempting to advance the interests of their citizens through antidumping legislation. The analysis also has implications for the effects of market integration policies, such as Europe 1992. JEL no. F12, F13, L11.