Economics Thinking of Anti-dumping Duties and Anti-dumping Subsidies

This paper analyzes the impact of imposing anti-dumping duty on national welfare for a given country from the economic perspective and makes a comparison between anti-dumping duty and the new concept of anti-dumping subsidies. Within a standardized analytical framework, the paper studies several cases under different assumptions and reached the following main conclusions: first, the use of anti-dumping subsidies will bring more welfare improvement to a given country compared with the case of anti-dumping duty; and secondly, the use of anti-dumping subsides can effectively prevent the abuse of an anti-dumping system.