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The Reasons for and the Impact of Antidumping Protection: The Case of People's Republic of China

Author

Listed:
  • Tianshu Chu

    ()

  • Thomas J. Prusa

    () (Economics Study Area, East-West Center)

Abstract

Over the past few decades, the liberalization in international trade has progressed at a rapid speed. While tariffs and quotas have been and continue to be reduced, another type of trade barrier, antidumping, is being used more and more frequently as a measure of protection. This paper focuses on the case of China, explores the characteristics, the reasons for and implications of antidumping. China is the largest targeting economy of antidumping (AD) trade disputes and there is evidence that China is more susceptible to antidumping than other economies, even after controlling for factors such as the non-market economy (NME) status. Our paper analyzes the reasons for China being so broadly and intensively targeted. In particular, the domestic characteristics of exports structure and industrial structures are examined. Our analysis also reveals that foreign direct investment (FDI) may be a significant factor explaining AD cases against China. There is also evidence that low concentration ratios in Chinese industries have contributed to the competitive price and low profit margins. An earlier draft of this paper was presented at the APEC Capacity-Building Workshop on Quantification of NTMs and Trade Facilitation, October 8-10, 2003, in Bangkok, Thailand.

Suggested Citation

  • Tianshu Chu & Thomas J. Prusa, 2004. "The Reasons for and the Impact of Antidumping Protection: The Case of People's Republic of China," Economics Study Area Working Papers 69, East-West Center, Economics Study Area.
  • Handle: RePEc:ewc:wpaper:wp69
    as

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    References listed on IDEAS

    as
    1. Thomas Prusa & Susan Skeath, 2002. "The economic and strategic motives for antidumping filings," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(3), pages 389-413, September.
    2. Raphael Bergoeing & Timothy J. Kehoe, "undated". "Trade Theory and Trade Facts," ILADES-Georgetown University Working Papers inv129, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.
    3. Hansen, Wendy L & Prusa, Thomas J, 1996. "Cumulation and ITC Decision-Making: The Sum of the Parts Is Greater Than the Whole," Economic Inquiry, Western Economic Association International, vol. 34(4), pages 746-769, October.
    4. Thomas J. Prusa, 2001. "On the spread and impact of anti-dumping," Canadian Journal of Economics, Canadian Economics Association, vol. 34(3), pages 591-611, August.
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    Cited by:

    1. Christopher Edmonds & Sumner J. La Croix & Yao Li, 2006. "The China's Rise as an International Trading Power," Economics Study Area Working Papers 88, East-West Center, Economics Study Area.
    2. repec:bla:asiaec:v:31:y:2017:i:1:p:3-16 is not listed on IDEAS

    More about this item

    JEL classification:

    • F0 - International Economics - - General
    • F1 - International Economics - - Trade

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