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The Impact of Granting Market Economy Status to China on Antidumping Duties and Imports: The Case of Korea

Author

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  • Park, Soonchan

    (Kongju National University)

Abstract

The Korean government has officially recognized China as a full market economy. This paper investigates the impact of grantingThe Korean government has officially recognized China as a full market economy. This paper investigates the impact of granting market economy status to China on antidumping (AD) duties and imports. With regard to non-market economies (like China), it is presumed that prices and costs are influenced by state interference and, therefore, authorities use prices and costs from a third party economy to construct normal values. This, however, leads to higher dumping margins. This paper examines the use of Non-Market Economy (NME) on dumping margins and statistical analysis finds that NME, in fact, raises margins by 18.7∼27.3%. Furthermore, the imposition of AD duties significantly restrains trade; for example, a 10% AD duty causes imports to fall by about 1.5~3.4%.

Suggested Citation

  • Park, Soonchan, 2006. "The Impact of Granting Market Economy Status to China on Antidumping Duties and Imports: The Case of Korea," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 10(2), pages 71-88, December.
    • Handle: RePEc:ris:eaerev:0162
    DOI: 10.11644/KIEP.JEAI.2006.10.2.158
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    More about this item

    Keywords

    Antidumping; Market Economy Status; Dumping Margin; Trade Effects;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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