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Trade Barriers and Participation in the Global Value Chain: An Empirical Study Based on Anti‐dumping toward China

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  • Xiaosong Wang
  • Zhexi Liu
  • Yue Lv
  • Chunming Zhao

Abstract

This paper investigates the effects of trade barriers on China's participation in the global value chain (GVC) using a thorough decomposition approach for trade volume, total exports, final exports and intermediate exports. Our econometric results indicate that anti‐dumping (AD) measures initiated by trade partners have restrained the process of China's participation in the GVC. From 2000 to 2014, AD measures reduced the foreign value‐added rate of total, final and intermediate exports by 4.5 to 28.7 percent, 3.4 to 17 percent and 1.2 to 8.5 percent, respectively. In addition, suffering the effects of AD measures, China's GVC position index declined by 8.2 percent to 28.6 percent during this period. Moreover, AD measures have increased industries' upstream index by 3.2 to 13.7 percent over the same period. These results imply that both the petition and approval of AD cases has had a negative influence on the extent and position of China's GVC participation.

Suggested Citation

  • Xiaosong Wang & Zhexi Liu & Yue Lv & Chunming Zhao, 2019. "Trade Barriers and Participation in the Global Value Chain: An Empirical Study Based on Anti‐dumping toward China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 27(2), pages 86-106, March.
    • Handle: RePEc:bla:chinae:v:27:y:2019:i:2:p:86-106
    DOI: 10.1111/cwe.12276
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    Cited by:

    1. Xiaodan Hu & Yunhua Tian & Yanping Zhou & Lu Feng, 2021. "How Do China's Importing Firms Respond to Non‐tariff Measures?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(4), pages 89-112, July.
    2. Yajun Zhu & Churen Sun, 2022. "Carbon Reduction, Pollution Intensity, and Firms’ Ratios of Value Added in Exports: Evidence from China’s Low-Carbon Pilot Policy," Sustainability, MDPI, vol. 14(19), pages 1-26, October.
    3. Sanguinet, Eduardo & Alvim, Augusto, 2020. "Effects of EU-MERCOSUR trade agreement on bilateral trade: the role of Brexit," Conference papers 333194, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Lamei Wu & Guifu Chen & Shuijun Peng, 2021. "Human Capital Expansion and Global Value Chain Upgrading: Firm‐level Evidence from China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(5), pages 28-56, September.
    5. Yuan, Jian & Zhang, Zhiming & Lou, Chunjie, 2023. "Do the rise of global value chain status avoid anti-dumping barriers? Evidence from Chinese micro-enterprises," Finance Research Letters, Elsevier, vol. 55(PA).

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