Min Zhu (University of Helsinki): The trade effects of antidumping duties: evidence from China

Min Zhu (University of Helsinki): The trade effects of antidumping duties: evidence from China

Abstract

I investigate how Chinese exports and firms respond to market-specific tariff shocks that arise from US antidumping measures. Using detailed customs data for China between 2000 and 2006, I first assess the trade destruction effect caused by US antidumping measures on Chinese products. I find that antidumping measures severely distort bilateral trade flows between China and US at product level. That is, the antidumping punished products experience a 70% relative reduction in export value. In addition, there is a significant negative impact on the extensive margin, i.e. a sharp decrease in the number of exporters. I then estimate the effects of US antidumping measures on Chinese exports on non-US markets. I find conclusive evidence that the US import restriction results in Chinese exports chilling to alternative markets. Furthermore, I study how individual Chinese exporter reacts to these antidumping actions. Do firms deflect the targeted products to third countries or switch to other similar products?

BOFIT seminars are held on Tuesdays at 10.30–11.30 in Rauhankatu 19, 3rd floor big meeting room (unless indicated otherwise).  Seminars are held in English.

BOFIT seminars are open to all economists interested in the subject areas covered. Please register in advance at bofit(at)bof.fi or by phone +358 10 831 2268 by noon of the preceding day. Visitors will be escorted from Rauhankatu 19 B (Kirjasto/Library) entrance to the seminar room 10 minutes before the seminar.