Abstract
A Negative Binomial Regression Model is used to investigate the sustainability of China–Mexico trade liberalization by testing the tariff lines underpinning Mexico’s successful antidumping (AD) measures against Chinese imports from 1991 to 2011. Evidence shows import tariff cutting and consumption growth have a positive impact on consumer goods but a negative impact on intermediaries. This result implies that while the Mexican government has expended considerable energy on the trade liberalization of intermediate and capital goods, the domestic consumer goods market has been protected from Chinese imports. The empirical results indicate that Mexico’s AD use for consumer goods helps to sustain trade liberalization of intermediate and capital goods under the domestic political pressures for trade opening.
Highlights
The existing process of globalization is unsustainable in the long run unless we introduce innovative institutions and policies to oversee it [1]
Sustainability 2015, 7 opening of different products. Such a “safety valve” on consumer goods helped to eliminate the obstacles of trade liberalization and to avoid subsequent potential political crises in face of unfair trade practices
As a result, dumping destabilizes the state regulations of the importing country. It increase the incentives for domestic producers to challenge the state regulations of labor and environmental conditions, so that they can better compete with foreign imports with minimized production costs
Summary
The existing process of globalization is unsustainable in the long run unless we introduce innovative institutions and policies to oversee it [1]. Fair trade sustains premium social-economic and environmental development under global competition It requires that the marketing strategy for a multinational firm is sustainable, namely, if it has proven broad base foundations to gain market share and to increase profitability [2]. As a result, dumping destabilizes the state regulations of the importing country It increase the incentives for domestic producers to challenge the state regulations of labor and environmental conditions, so that they can better compete with foreign imports with minimized production costs. Such practices are detrimental to domestic social-economic welfare [3]. As such, dumping companies are expected to lose a great mass of market share or the entire market
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