Abstract
Using country-industry data, this study investigates factors which affect anti-dumping investigation via Probit model. We find that with the increase of trade, GDP per capita, population, exchange rate, accession to WTO and the occurrence of financial crisis, China more likely suffer from anti-dumping investigation，while with the increase of distance, China less likely suffer from anti-dumping investigation. Further, after divided the export into extensive margin and intensive margin, we find that the negative effect of trade on anti-dumping investigation mainly comes from the increase of intensive margin. The increases of extensive margin may reduce the chances of suffering from anti-dumping investigation.
Highlights
With China’s accession to the WTO, China experiences a great increase in export, surpassing the United States as the world's second largest exporter in 2007, and overtaking Germany to be the world's largest exporter in 2009
The results show that trade, population, GDP per capital, WTO accession, exchange rate and crisis are statistically significant and positive, while distance is statistically significant and negative, free trade agreement and tariff is insignificant, suggesting that the possibility of suffering from anti-dumping investigation increase after increase export to others countries, which is similar with Prusa (2005) Aggarwal (2004) Shen (2007) Wang and Xie (2009), increase in GDP per capita, which is similar with Knetter and Prusa (2003) and Xie (2006), depreciation of RMB against the US dollar, which is similar with Feinberg (1989) Knetter and Prusa (2003), and after China's WTO accession, occurrence of the financial crisis and increase of the population
The results of Order Probit regression show that trade, population, GDP per capital, WTO accession, exchange rate and crisis are statistically significant and positive, while distance is statistically significant and negative, free trade agreement and tariff is insignificant, which support the conclusions in Probit regression
Summary
With China’s accession to the WTO, China experiences a great increase in export, surpassing the United States as the world's second largest exporter in 2007, and overtaking Germany to be the world's largest exporter in 2009. With the development of export, China suffered a lot from anti-dumping investigation with total 1414 annual average 51.4 during 1995-2013. Since Donald Trump was selected as the new president of the United States in 2016, trade protection booms again in the United States with exiting from the Trans Pacific Partnership Agreement (TPP), renegotiation the North American Free Trade Agreement (NAFTA), revision the U.S - Korea Free Trade Agreement, and tax reform to attract inflows of capital. Currently it is theoretical and practical significance to study the factors which affect the investigation of anti-dumping
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