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

  • Lee, Minsoo

    (Asian Development Bank)

  • Park, Donghyun

    (Asian Development Bank)

  • Cui, Aibo

    (Bank of China)

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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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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  1. repec:att:wimass:9413 is not listed on IDEAS
  2. Thomas J. Prusa, 1996. "The Trade Effects of U.S. Antidumping Actions," Departmental Working Papers 199603, Rutgers University, Department of Economics.
  3. Bruce A. Blonigen, 2006. "Evolving discretionary practices of U.S. antidumping activity," Canadian Journal of Economics, Canadian Economics Association, vol. 39(3), pages 874-900, August.
  4. Maurizio Zanardi, 2004. "Anti-dumping: What are the Numbers to Discuss at Doha?," The World Economy, Wiley Blackwell, vol. 27(3), pages 403-433, 03.
  5. Robert Staiger & Frank Wolak, 1994. "Measuring Industry Specific Protection: Antidumping in the United States," International Trade 9410004, EconWPA.
  6. Bruce A. Blonigen & Chad P. Bown, 2001. "Antidumping and Retaliation Threats," NBER Working Papers 8576, National Bureau of Economic Research, Inc.
  7. 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.
  8. Hylke Vandenbussche & Jozef Konings & Linda Springael, 1999. "Import Diversion under European Antidumping Policy," NBER Working Papers 7340, National Bureau of Economic Research, Inc.
  9. 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.
  10. Swagel, Phillip & Mankiw, N, 2005. "Antidumping: The Third Rail of Trade Policy," Scholarly Articles 2961701, Harvard University Department of Economics.
  11. Glenda Mallon & John Whalley, 2004. "China's Post Accession WTO Stance," NBER Working Papers 10649, National Bureau of Economic Research, Inc.
  12. 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.
  13. 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).
  14. 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.
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