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Do temporary trade barriers substitute tariff reductions in China?

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  • Meiling Kang
  • Luyao Liu
  • Yucheng Li

Abstract

Starting from the trade policy substitution hypothesis, this paper uses detailed product-level data from 1997 to 2015 to supplement empirical evidence in China. We find that to the extent permitted by the WTO, there is a substitution relationship between temporary trade barriers and tariff reductions in China. Among the three types of temporary trade barriers, antidumping is the most frequent tool and presents a remarkably negative relationship with tariff reductions. After a set of robustness tests, the relationship still holds. Therefore, this paper verifies the trade policy substitution hypothesis and provides theoretical support for trade policy practice in the context of trade liberalization.

Suggested Citation

  • Meiling Kang & Luyao Liu & Yucheng Li, 2024. "Do temporary trade barriers substitute tariff reductions in China?," Applied Economics Letters, Taylor & Francis Journals, vol. 31(8), pages 768-773, May.
    • Handle: RePEc:taf:apeclt:v:31:y:2024:i:8:p:768-773
    DOI: 10.1080/13504851.2022.2146649
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