Importers’ Responses to the Anti-dumping Duty of Steel in Indonesia

  • Dony Febriyanto
  • Fithra Faisal Hastiadi


This research aims to delve into the impact of anti-dumping policies on steel imports volume in Indonesia. It employs ordinary least squares (OLS) method with a fixed-effects model using a sample of unbalanced data panel of imports from 48 countries, comprising those that impose anti-dumping duty (AD) on specific HS code steel (named countries) and those that are not subject to imported steel AD (non-named countries) in the period 2007–2015. As Indonesia is an object country that has different characteristics from other developed countries in earlier research, the object of this research confirms impact of trade diversion as trade as well as reduction as the policy impact of Indonesia’s AD of steel. The empirical research results find the existence of trade reduction in the volume of steel imports from the named countries but do not prove the existence of trade diversion of steel import volumes from non-named countries. Such results contrast to those occurring in previous studies in which the imposition of the anti-dumping tariffs in the United States, European Union, Japan, and other developed countries, in addition to impact trade reduction, causes trade diversion.


Anti-dumping Trade diversion Imports 


  1. Bown, C. P., & Crowley, M. A. (2007). Trade Deflection and Trade Depression. Journal of International Economics, 72, 176–201.CrossRefGoogle Scholar
  2. Brenton, P. (2001). Anti Dumping Policies in the EU and Trade Diversion. European Journal of Political Economy, 17(3), 593–607.CrossRefGoogle Scholar
  3. Durling, J. P., & Prusa, T. J. (2006). The Trade Effects Associated with an Antidumping Epidemic: The Hot-Rolled Steel Market, 1996–2001. European Journal of Political Economy, 22, 675–695.CrossRefGoogle Scholar
  4. Egger, P., & Nelson, D. (2011). How Bad Is Anti Dumping? Evidence from Panel Data. The Review of Economic and Statistic, 93(4), 1374–1390.CrossRefGoogle Scholar
  5. Ganguli, B. (2008). The Trade Effects of Indian Antidumping Actions. Review of International Economics, 16(5), 930–941.Google Scholar
  6. Gifford, D. J., & Kudrle, R. T. (2009). Law and Economics of Price Discrimination in Modern Economies: Time for Reconciliation. The UC Davis L. Rev., 43, 1235.Google Scholar
  7. Hsiao, C. (2004). Analysis of Panel Data. Cambridge: Cambridge Books, Cambridge University Press.Google Scholar
  8. Konings, J., Vandenbussche, H., & Springael, L. (2001). Import Diversion Under European Antidumping Policy. Journal of Industry, Competition and Trade, 1(3), 283–299.CrossRefGoogle Scholar
  9. Lee, S. Y., & Jun, S. H. (2004). On the Investigation Effects of United States Anti-Dumping Petitions. Journal of World Trade, 38(3), 425–439.Google Scholar
  10. Marsh, S. J. (1998). Creating Barriers for Foreign Competitors: A Study of the Impact of Anti-dumping Actions on the Performance of U.S. Firms. Strategic Management Journal, 19(1), 25–37.CrossRefGoogle Scholar
  11. Neufeld, I. N., & CNUCED. (2001). Anti-Dumping and Countervailing Procedures: Use or Abuse? Implications for Developing Countries. UN.Google Scholar
  12. Park, S.-C. (2009). The Trade Depressing and Trade Diversion Effect of Anti Dumping Action: The Case of China. China Economic Review, 20(23), 542–548.CrossRefGoogle Scholar
  13. Prusa, T. J. (1996). The Trade Effects of U.S. Antidumping Actions. NBER Working Paper No. 5440.Google Scholar
  14. Prusa, T. J. (1999). On the Spread and Impact of Antidumping. NBER Working Paper 7404.Google Scholar
  15. Prusa, T. J. (2013). Anti Dumping and the Death of Trade. NBER Working Paper No. 19555. Cambridge, MA: National Bureau of Economic Research.Google Scholar
  16. Tharakan, P. (1995). Political Economy and Contingent Protection. The Economic Journal, 105, 1550–1564.CrossRefGoogle Scholar
  17. Vandenbussche, H., & Zanardi, M. (2010). The Chilling Trade Effects of Antidumping Proliferation. European Economic Review, 54, 760–777.CrossRefGoogle Scholar
  18. Viner, J. (1923). Dumping: A Problem in International Trade. Chicago, IL: University of Chicago Press.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Dony Febriyanto
    • 1
  • Fithra Faisal Hastiadi
    • 2
  1. 1.Ministry of FinanceJakartaIndonesia
  2. 2.Universitas IndonesiaDepokIndonesia

Personalised recommendations