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

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  • Park, Soonchan

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.

Suggested Citation

  • Park, Soonchan, 2009. "The trade depressing and trade diversion effects of antidumping actions: The case of China," China Economic Review, Elsevier, vol. 20(3), pages 542-548, September.
    • Handle: RePEc:eee:chieco:v:20:y:2009:i:3:p:542-548
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    Cited by:

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    2. Xiaodan Hu & Yunhua Tian & Yanping Zhou & Lu Feng, 2021. "How Do China's Importing Firms Respond to Non‐tariff Measures?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(4), pages 89-112, July.
    3. Mahdi Ghodsi, 2020. "The impact of Chinese technical barriers to trade on its manufacturing imports when exporters are heterogeneous," Empirical Economics, Springer, vol. 59(4), pages 1667-1698, October.
    4. Ning Meng & Chris Milner & Huasheng Song, 2016. "Differences in the determinants and targeting of antidumping: China and India compared," Applied Economics, Taylor & Francis Journals, vol. 48(43), pages 4083-4097, September.
    5. Haoyuan Ding & Xiao Li & Jiezhou Ying, 2023. "Anti‐dumping Policies and International Portfolio Allocation: The View from the Global Funds," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(2), pages 58-83, March.
    6. Zhang, Hongyong, 2018. "Political connections and antidumping investigations: Evidence from China," China Economic Review, Elsevier, vol. 50(C), pages 34-41.
    7. Xuqian Hu & Canfei He, 2020. "Nontariff measures, trade deflection, and market expansion of exporters in China," Growth and Change, Wiley Blackwell, vol. 51(3), pages 932-953, September.
    8. Zijun Luo & Xu Tian, 2018. "Can China’s meat imports be sustainable? A case study of mad cow disease," Applied Economics, Taylor & Francis Journals, vol. 50(9), pages 1022-1042, February.
    9. Zhu, Xiangdong & He, Canfei & Gu, Zhutong, 2021. "Benefit from local or destination? The export expansion of Chinese photovoltaic industry under trade protection," Energy Economics, Elsevier, vol. 104(C).
    10. Chrysostomos Tabakis & Maurizio Zanardi, 2017. "Antidumping Echoing," Economic Inquiry, Western Economic Association International, vol. 55(2), pages 655-681, April.
    11. Cheng, Lu & Mi, Zhifu & Coffman, D'Maris & Meng, Jing & Chang, Dongfeng, 2021. "Destruction and Deflection: Evidence from American Antidumping Actions against China," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 203-213.
    12. Magdalene Silberberger & Anja Slany & Christian Soegaard & Frederik Stender, 2022. "The Aftermath of Anti-Dumping: Are Temporary Trade Barriers Really Temporary?," Open Economies Review, Springer, vol. 33(4), pages 677-704, September.
    13. Guobing Shen & Peijie Wang & Yuanhan Xu, 2021. "Trade destruction and deflection effects of US‐China trade frictions on China’s tariff‐targeted products," The World Economy, Wiley Blackwell, vol. 44(7), pages 2076-2106, July.
    14. Yan Zhang, 2017. "Impact of Latin-American and Caribbean Antidumping Measures on Chinese Exports," IDB Publications (Working Papers) 97857, Inter-American Development Bank.

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