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

31 Pages Posted: 12 Aug 2014

See all articles by Minsoo Lee

Minsoo Lee

Asian Development Bank

Donghyun Park

Asian Development Bank - Economic Research

Aibo Cui

Bank of China International Co., Ltd.

Date Written: October 2013

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.

Keywords: antidumping duty, trade diversion effect, trade restriction effect, the People's Republic of China

JEL Classification: F12, F13, F14

Suggested Citation

Lee, Minsoo and Park, Donghyun and Cui, Aibo, Invisible Trade Barriers: Trade Effects of US Antidumping Actions Against the People's Republic of China (October 2013). Asian Development Bank Economics Working Paper Series No. 378, Available at SSRN: https://ssrn.com/abstract=2474559 or http://dx.doi.org/10.2139/ssrn.2474559

Minsoo Lee (Contact Author)

Asian Development Bank ( email )

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Donghyun Park

Asian Development Bank - Economic Research ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Aibo Cui

Bank of China International Co., Ltd. ( email )

Hong Kong
China

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