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The trade depressing and trade diversion effects of antidumping actions: The case of China

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  • Park, Soonchan
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    Abstract

    China is by far the main target of antidumping (AD) litigation for most of its major trading partners. Recently, however, China itself has started using AD instrument intensively and was, in fact, the third leading country in initiating AD investigations between 2002 and 2004. This paper empirically investigates the impact of China's AD activities on trade by employing the system GMM estimator. The empirical results show that AD protection has significant trade depressing and trade diversion effects. These findings are consistent with Prusa [Prusa, T.A., 2001. On the Spread and Impact of Antidumping, Canadian Journal of Economics 34, 591-611.] and Brenton [Brenton, P., 2001. Anti-dumping policies in the EU and trade diversion, European Journal of Political Economy 17, 593-607] that investigate the trade effects of AD actions in the US and EU, respectively.

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    Bibliographic Info

    Article provided by Elsevier in its journal China Economic Review.

    Volume (Year): 20 (2009)
    Issue (Month): 3 (September)
    Pages: 542-548

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    Handle: RePEc:eee:chieco:v:20:y:2009:i:3:p:542-548

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    Web page: http://www.elsevier.com/locate/chieco

    Related research

    Keywords: Antidumping China Trade depressing Trade diversion;

    References

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    1. Messerlin, Patrick, 2004. "China in the World Trade Organization: Antidumping and Safeguards," Open Access publications from Sciences Po info:hdl:2441/8335, Sciences Po.
    2. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
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    4. Thomas J. Prusa, 1997. "The Trade Effects of U.S. Antidumping Actions," NBER Chapters, in: The Effects of U.S. Trade Protection and Promotion Policies, pages 191-214 National Bureau of Economic Research, Inc.
    5. Brenton, Paul, 2001. "Anti-dumping policies in the EU and trade diversion," European Journal of Political Economy, Elsevier, vol. 17(3), pages 593-607, September.
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    17. Robert M. Feinberg & Kara M. Reynolds, 2007. "Tariff Liberalisation and Increased Administrative Protection: Is There a Quid Pro Quo?," The World Economy, Wiley Blackwell, vol. 30(6), pages 948-961, 06.
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