IDEAS home Printed from https://ideas.repec.org/p/ris/adbewp/0378.html
   My bibliography  Save this paper

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

Author

Listed:
  • Lee, Minsoo

    (Asian Development Bank)

  • Park, Donghyun

    (Asian Development Bank)

  • Cui, Aibo

    (Bank of China)

Abstract

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.

Suggested Citation

  • Lee, Minsoo & Park, Donghyun & Cui, Aibo, 2013. "Invisible Trade Barriers: Trade Effects of US Antidumping Actions Against the People’s Republic of China," ADB Economics Working Paper Series 378, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0378
    Note: http://www.adb.org/sites/default/files/pub/2013/ewp-378.pdf
    as

    Download full text from publisher

    File URL: https://www.adb.org/publications/invisible-trade-barriers-trade-effects-us-antidumping-actions-against-peoples-republic
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Maurizio Zanardi, 2004. "Anti‐dumping: What are the Numbers to Discuss at Doha?," The World Economy, Wiley Blackwell, vol. 27(3), pages 403-433, March.
    2. Thomas J. Prusa, 2021. "The Trade Effects of U.S. Antidumping Actions," World Scientific Book Chapters, in: Thomas J Prusa (ed.), Economic Effects of Antidumping, chapter 3, pages 21-43, World Scientific Publishing Co. Pte. Ltd..
    3. 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.
    4. Jozef Konings & Hylke Vandenbussche & Linda Springael, 2001. "Import Diversion under European Antidumping Policy," Journal of Industry, Competition and Trade, Springer, vol. 1(3), pages 283-299, September.
    5. Robert W. Staiger & Frank A. Wolak, 1994. "Measuring Industry-Specific Protection: Antidumping in the United States," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(1994 Micr), pages 51-118.
    6. 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.
    7. Blonigen, Bruce A. & Bown, Chad P., 2003. "Antidumping and retaliation threats," Journal of International Economics, Elsevier, vol. 60(2), pages 249-273, August.
    8. 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.
    9. 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).
    10. Patrick A. Messerlin, 2004. "China in the World Trade Organization: Antidumping and Safeguards," The World Bank Economic Review, World Bank, vol. 18(1), pages 105-130.
    11. Glenda Mallon & John Whalley, 2004. "China's Post Accession WTO Stance," NBER Working Papers 10649, National Bureau of Economic Research, Inc.
    12. Paul Brenton, 2014. "Anti-dumping policies in the EU and trade diversion," World Scientific Book Chapters, in: INTERNATIONAL TRADE, DISTRIBUTION AND DEVELOPMENT Empirical Studies of Trade Policies, chapter 4, pages 67-81, World Scientific Publishing Co. Pte. Ltd..
    13. Swagel, Phillip & Mankiw, N, 2005. "Antidumping: The Third Rail of Trade Policy," Scholarly Articles 2961701, Harvard University Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cheng, Lu & Mi, Zhifu & Coffman, D'Maris & Meng, Jing & Chang, Dongfeng, 2021. "Destruction and Deflection: Evidence from American Antidumping Actions against China," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 203-213.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kokko, Ari & Gustavsson Tingvall, Patrik & Videnord, Josefin, 2017. "Which Antidumping Cases Reach the WTO?," Ratio Working Papers 286, The Ratio Institute.
    2. Park, Soonchan, 2009. "The trade depressing and trade diversion effects of antidumping actions: The case of China," China Economic Review, Elsevier, vol. 20(3), pages 542-548, September.
    3. Hylke Vandenbussche & Maurizio Zanardi, 2008. "What explains the proliferation of antidumping laws? [‘Antidumping Laws in the US; Use and Welfare Consequences’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 23(53), pages 94-138.
    4. Minsoo Lee & Donghyun Park & Antonio Saravia, 2017. "Trade Effects of US Antidumping Actions against China-super-," Asian Economic Journal, East Asian Economic Association, vol. 31(1), pages 3-16, March.
    5. Joseph, Siny & Lavoie, Nathalie, 2008. "Effectiveness of COOL in the U.S. Seafood Industry," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6260, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Laura Rovegno, 2013. "Trade protection and market power: evidence from US antidumping and countervailing duties," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(3), pages 443-476, September.
    7. Niels, Gunnar & ten Kate, Adriaan, 2006. "Antidumping policy in developing countries: Safety valve or obstacle to free trade?," European Journal of Political Economy, Elsevier, vol. 22(3), pages 618-638, September.
    8. Vandenbussche, Hylke & Zanardi, Maurizio, 2010. "The chilling trade effects of antidumping proliferation," European Economic Review, Elsevier, vol. 54(6), pages 760-777, August.
    9. Meredith A. Crowley, 2007. "Cyclical dumping and U.S. antidumping protection: 1980-2001," Working Paper Series WP-07-21, Federal Reserve Bank of Chicago.
    10. Magdalene Silberberger & Anja Slany & Christian Soegaard & Frederik Stender, 2022. "The Aftermath of Anti-Dumping: Are Temporary Trade Barriers Really Temporary?," Open Economies Review, Springer, vol. 33(4), pages 677-704, September.
    11. Durling, James P. & Prusa, Thomas J., 2006. "The trade effects associated with an antidumping epidemic: The hot-rolled steel market, 1996-2001," European Journal of Political Economy, Elsevier, vol. 22(3), pages 675-695, September.
    12. Chad P. Bown, 2010. "China's WTO Entry: Antidumping, Safeguards, and Dispute Settlement," NBER Chapters, in: China's Growing Role in World Trade, pages 281-337, National Bureau of Economic Research, Inc.
    13. Robert M. Feinberg & Kara M. Reynolds, 2006. "The Spread of Antidumping Regimes and the Role of Retaliation in Filings," Southern Economic Journal, John Wiley & Sons, vol. 72(4), pages 877-890, April.
    14. Chrysostomos Tabakis & Maurizio Zanardi, 2017. "Antidumping Echoing," Economic Inquiry, Western Economic Association International, vol. 55(2), pages 655-681, April.
    15. Jozef Konings & Hylke Vandenbussche & Linda Springael, 2001. "Import Diversion under European Antidumping Policy," Journal of Industry, Competition and Trade, Springer, vol. 1(3), pages 283-299, September.
    16. Sandkamp, Alexander, 2020. "The trade effects of antidumping duties: Evidence from the 2004 EU enlargement," Journal of International Economics, Elsevier, vol. 123(C).
    17. Ahmed Nawaz Hakro & Syed Hasanat Shah, 2007. "Economic Rationale, Trade Impact and Extent of Antidumping – A Case Study of Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 12(1), pages 79-98, Jan-Jun.
    18. Ludo Cuyvers & Michel Dumont, 2005. "EU Anti‐dumping Measures against ASEAN Countries: Impact on Trade Flows," Asian Economic Journal, East Asian Economic Association, vol. 19(3), pages 249-271, September.
    19. Bown, Chad P., 2009. "The global resort to antidumping, safeguards, and other trade remedies amidst the economic crisis," Policy Research Working Paper Series 5051, The World Bank.
    20. Blonigen, Bruce A., 2006. "Working the system: Firm learning and the antidumping process," European Journal of Political Economy, Elsevier, vol. 22(3), pages 715-731, September.

    More about this item

    Keywords

    antidumping duty; trade diversion effect; trade restriction effect; the PRC;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:adbewp:0378. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Orlee Velarde (email available below). General contact details of provider: https://edirc.repec.org/data/eradbph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.