Dynamic analysis of antidumping using impulse responses: a case between the United States and China

This study empirically investigated the dynamic aspects of antidumping. It focuses on the antidumping measures imposed by the United States on Chinese imports. To capture the dynamic effects, we employ a local projection method and monthly US import data. We document that the trade depression effect (decreased imports from China, the named country) of antidumping exists dynamically. Statistically significant and persistent decrease in Chinese imports begin when the preliminary duty is levied. Additionally, the trade diversion effect is illustrated by the statistically significant increase in imports from non-named countries when the final duty is imposed. Lastly, we demonstrate that a substantial bias could occur if the preliminary or the final duty is used as an antidumping measure in isolation, without considering anticipated parts of these measures.