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Destruction and Deflection: Evidence from American Antidumping Actions against China

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  • Cheng, Lu
  • Mi, Zhifu
  • Coffman, D'Maris
  • Meng, Jing
  • Chang, Dongfeng

Abstract

With a decrease in tariffs around the world, antidumping duties, as an important part of temporary trade barriers, have increased dramatically to take their place. China and the United States (US) are the two heaviest targets and users of antidumping investigations respectively. In this paper, using Chinese annual transaction-level export data from 2000 to 2017, we study the trade destruction effect and the trade deflection effect of all antidumping investigations initiated by the US against China. We find strong evidence of both destruction and deflection effects. American antidumping actions reduce China's exports to the US, while increasing exports to non-US countries. Critically, the trade destruction and deflection effects are long-lived, and industry indicators (including industry employment, industry concentration and capital intensity) play significant roles in deflecting trade. In general, the impact of antidumping actions could be greater than what the direct effect alone might suggest.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:streco:v:57:y:2021:i:c:p:203-213
    DOI: 10.1016/j.strueco.2021.03.009
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    More about this item

    Keywords

    Antidumping; Trade Destruction Effect; Trade Deflection Effect;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions

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