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Invisible Trade Barriers: Trade Effects of US Antidumping Actions Against the People’s Republic of China

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  • Lee, Minsoo

    (Asian Development Bank)

  • Park, Donghyun

    (Asian Development Bank)

  • Cui, Aibo

    (Bank of China)

Abstract

We conduct an empirical analysis on the impact of the United States (US) antidumping actions against the People’s Republic of China (PRC) on the bilateral trade and US imports from other trade partners. Using the data set based on the Harmonized System (HS) tariff code, we examine the trade patterns of the PRC and other countries, and find evidence for the trade restriction effect and the trade diversion effect. Further, we examine the intensity and duration of both restriction and diversion effects. The antidumping measures have effectively raised the prices of imports from the PRC and reduced US imports from the PRC only in the short term. Nevertheless, due to the coexistence of trade diversion effects, the overall remedy effect of antidumping actions on domestic industries is considerably limited. In addition, we investigate other factors that influence the efficiency of antidumping measures, such as the antidumping duty amount, the PRC’s market position in the US, and the US market share in the PRC.

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Bibliographic Info

Paper provided by Asian Development Bank in its series ADB Economics Working Paper Series with number 378.

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Length: 29 pages
Date of creation: 16 Oct 2013
Date of revision:
Handle: RePEc:ris:adbewp:0378

Note: http://www.adb.org/sites/default/files/pub/2013/ewp-378.pdf
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Keywords: antidumping duty; trade diversion effect; trade restriction effect; the PRC;

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  1. Corinne M. Krupp & Patricia S. Pollard, 1996. "Market Responses to Antidumping Laws: Some Evidence from the U.S. Chemical Industry," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 199-227, February.
  2. repec:att:wimass:9413 is not listed on IDEAS
  3. Bruce A. Blonigen, 2002. "Evolving Discretionary Practices of U.S. Antidumping Activity," University of Oregon Economics Department Working Papers 2003-20, University of Oregon Economics Department, revised 01 Aug 2003.
  4. Thomas J. Prusa, 1996. "The Trade Effects of U.S. Antidumping Actions," Departmental Working Papers 199603, Rutgers University, Department of Economics.
  5. Hylke Vandenbussche & Jozef Konings & Linda Springael, 1999. "Import Diversion under European Antidumping Policy," NBER Working Papers 7340, National Bureau of Economic Research, Inc.
  6. Bruce A. Blonigen & Chad P. Bown, 2001. "Antidumping and Retaliation Threats," NBER Working Papers 8576, National Bureau of Economic Research, Inc.
  7. Robert Staiger & Frank Wolak, 1994. "Measuring Industry Specific Protection: Antidumping in the United States," International Trade 9410004, EconWPA.
  8. Swagel, Phillip & Mankiw, N, 2005. "Antidumping: The Third Rail of Trade Policy," Scholarly Articles 2961701, Harvard University Department of Economics.
  9. Patrick A. Messerlin, 2004. "China in the World Trade Organization: Antidumping and Safeguards," World Bank Economic Review, World Bank Group, vol. 18(1), pages 105-130.
  10. A. Lasagni, 2000. "Does country-targeted anti-dumping policy by the EU create trade diversion?," Economics Department Working Papers 2000-EP02, Department of Economics, Parma University (Italy).
  11. Aggarwal, Aradhna, 2004. "Macro Economic Determinants of Antidumping: A Comparative Analysis of Developed and Developing Countries," World Development, Elsevier, vol. 32(6), pages 1043-1057, June.
  12. Maurizio Zanardi, 2004. "Antidumping: what are the numbers to discuss at Doha?," ULB Institutional Repository 2013/9831, ULB -- Universite Libre de Bruxelles.
  13. 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.
  14. Glenda Mallon & John Whalley, 2004. "China's Post Accession WTO Stance," NBER Working Papers 10649, National Bureau of Economic Research, Inc.
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