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Political connections and antidumping investigations: Evidence from China

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  • Zhang, Hongyong

Abstract

Do political connections affect antidumping (AD) investigations? To address this question, we use antidumping filings data combined with micro data on Chinese manufacturing firms for the period 1998–2007. The political connections of a firm are defined by whether it has state-owned capital or whether it is under the administration of central or provincial government. Estimating a probit model of AD filings at the firm level, we find that strong political connections significantly increase the likelihood of AD petitions and affirmative final dumping decisions. State-owned enterprises, firms affiliated with the central or provincial government, low productivity firms, and large firms tend to file AD investigations in China. The industry-level estimation results also confirm that the industries with a greater presence of state-owned enterprises are likely to apply for and receive trade protection from the Chinese government, controlling for import penetration, year, and industry fixed effects.

Suggested Citation

  • Zhang, Hongyong, 2018. "Political connections and antidumping investigations: Evidence from China," China Economic Review, Elsevier, vol. 50(C), pages 34-41.
    • Handle: RePEc:eee:chieco:v:50:y:2018:i:c:p:34-41
    DOI: 10.1016/j.chieco.2018.03.001
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    Cited by:

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    2. Ito, Asei & Lim, Jaehwan & Zhang, Hongyong, 2023. "Catching the political leader's signal: Economic policy uncertainty and firm investment in China," China Economic Review, Elsevier, vol. 81(C).
    3. Yuping Deng & Yanrui Wu & Helian Xu, 2020. "Political Connections and Firm Pollution Behaviour: An Empirical Study," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(4), pages 867-898, April.
    4. Mukunoki, Hiroshi, 2021. "Trade liberalization and incentives to implement antidumping protection," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 422-437.
    5. Marta Martín-Nieto & Damián Castaño & Sergio Horta Muñoz & David Ruiz, 2024. "Solving Mazes: A New Approach Based on Spectral Graph Theory," Mathematics, MDPI, vol. 12(15), pages 1-13, July.
    6. Bahoo, Salman, 2020. "Corruption in banks: A bibliometric review and agenda," Finance Research Letters, Elsevier, vol. 35(C).
    7. Evans Opoku-Mensah & Yuming Yin & Bismark Addai, 2021. "Do Mature Firms Gain Higher Economic Value from R&D Investment?," Journal of Industry, Competition and Trade, Springer, vol. 21(2), pages 211-223, June.
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    9. Liu, Shiyuan & Du, Jiang & Zhang, Weike & Tian, Xiaoli & Kou, Gang, 2021. "Innovation quantity or quality? The role of political connections," Emerging Markets Review, Elsevier, vol. 48(C).
    10. Tan Li & Wei Xiao, 2022. "US antidumping investigations and employment adjustment in Chinese manufacturing firms," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(1), pages 159-182, January.
    11. Deng, Yuping & Wu, Yanrui & Xu, Helian, 2019. "Political connections and firm pollution behaviour: An empirical study," BOFIT Discussion Papers 4/2019, Bank of Finland Institute for Emerging Economies (BOFIT).
    12. Li, Yue & Li, Wanli, 2022. "Are innovative exporters vulnerable to anti-dumping investigations?," Technovation, Elsevier, vol. 112(C).

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    More about this item

    Keywords

    Antidumping; Political connections; State-owned enterprises;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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