COMMENTARY ON CHAPTER 17
The contribution of Chapter 17 clearly lies in the great effort taken by Harald Gruber to give a detailed description of the semiconductor industry in Europe. Studies such as his are a necessary prerequisite for modelling the industry and the effects of trade policy measures like antidumping. My main comment on this chapter is that in my view Gruber is trying to address two different issues which he does not always disentangle clearly. The first issue raised is whether antidumping measures are the appropriate tool to assess fairness in the exporting country’s behaviour. In this respect, Gruber is very clear. He rightly points out that antidumping action is inappropriate to assess an exporter’s pricing behaviour in an industry with learning economies because the dumping legislation looks at prices and costs in a static framework, while industries with learning economies ought to be assessed in a dynamic cost framework. Therefore the European Union to some extent accuses the innocent. The main crux of the chapter is devoted to developing this argument.