Turkey's Anti-Dumping Policy and Its Impacts on Firms' Behaviors

Abstract

Dumping is a well-known concept in international economics and has significant consequences on trade patterns and firm imports behavior. The study attempts to make a coherent and comprehensive evaluation of Turkish anti-dumping policy and focuses on empirical aspects with special emphasis on firm behavior under different circumstances. The first chapter is a summary and introduction of basic concepts, historical developments, institutional framework, application procedures and stylized facts of anti-dumping policies. The second chapter explains the determinants of anti-dumping investigations in Turkey, which is one of the most frequent users of such investigations in the world. Additionally, rising global protectionism after 2012 stimulated the implementation of new measures in many countries. Most notable of such measures is the extensive use of Additional Customs Duty in Turkey. The study examines this policy tool for the first time in the literature among anti-dumping determinants. Negative binomial regression models used for 1989-2019 period to illustrate different variables such as retaliation motives, deterioration in trade deficit, productivity of the manufacturing sector and real GDP growth as important factors affecting investigations. The findings indicate that certain protectionist motives matter more in Turkish anti-dumping policy rather than unfair competition dynamics. The last chapter examines the impacts of different stages of anti-dumping investigations over steel industry by using intervention analysis. Turkey is among the major global actors in steel products, and steel imports have always been most important targets of Turkish anti-dumping policy. The study investigates the impacts of different actions of anti-dumping investigations over firms' import decisions in this industry. Different stages of selected investigations are analyzed, and intervention analysis is used for 2009-2021 period. The findings indicate that certain interventions have considerable signaling effects over firms' import decisions.