The Research on Anti-dumping, Cost and Chinese Export: Based on Multilateral Resistance Term of Gravity Model

Rou Li

doi:10.5539/ijbm.v13n4p210

Abstract

Using country-industry data, this study investigates the effect of anti-dumping on Chinese export via Multilateral Resistance Term of Gravity Model. Begin with the effect of anti-dumping on total export, we further investigate the mechanism between them with extensive margin and intensive margin theory in Dutt et al. (2013). We find that, anti-dumping has a statistically significant and negative effect on total export, extensive margin and intensive margin, and the increase of variable cost is the mechanism of negative effect between anti-dumping and export.

Highlights

With the exit of the Trans Pacific Partnership Agreement (TPP), renegotiation the North American Free Trade Agreement (NAFTA), revision of the U.S - Korea Free Trade Agreement, and tax reform to attract large inflows of capital, trade protection as guidelines for policy formulation has been implemented in the United States since Donald Trump was elected as the new president of the United States in 2016
This study investigates the effect of anti-dumping on total export in Table 1, among which we don’t add the country and industry fixed effects in column (1), add the country fixed effect in column (2), and add country and industry fixed effects in column (3)
As Trump was elected as the new president of the United States, the trends of trade protection boom again

Summary

Introduction

With the exit of the Trans Pacific Partnership Agreement (TPP), renegotiation the North American Free Trade Agreement (NAFTA), revision of the U.S - Korea Free Trade Agreement, and tax reform to attract large inflows of capital, trade protection as guidelines for policy formulation has been implemented in the United States since Donald Trump was elected as the new president of the United States in 2016. As the world’s biggest economic, American trade policy infers that trade protection booms again. Currently the researches on trade protection and export are very important both theoretically and practically especially for developing countries whom rely on export-oriented policy to develop economics. We figure the trade protection taking place in China in recent years in Figure 1 (1). The number of anti-dumping cases initiated by other countries towards China is 870 with annual average 45.8 during 1995-2003, and 344 with annual average 57 during 2008-2013. In addition to anti-dumping, China suffer from others non-tariff barriers such as countervailing investigation, sanitary and phytosanitary investigation, quantitative restrictions and so on.

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Results

Conclusion