The Nexus between Antidumping Petitions and Exports during the Global Financial Crisis: Evidence on the People’s Republic of China

Faqin Lin, Hsiao Chink Tang () and Lin Wang ()
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Hsiao Chink Tang: Asian Development Bank, Postal: 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, http://www.adb.org
Lin Wang: Institute of Economics of the Chinese Academy of Social Sciences, Postal: 2, Yuetanbeixiaojie, Fuwai, Xicheng District, Beijing, 100836, the People’s Republic of China

No 131, Working Papers on Regional Economic Integration from Asian Development Bank

Abstract: This paper quantifies how the People’s Republic of China’s (PRC) export volume to its major trading partners during the global financial crisis affects the antidumping (AD) petitions filed by the trading partners against the PRC. Focusing on the AD petitions at the Harmonized System (HS) Code 8-digit level and the PRC’s exports at the HS 2-digit level, we construct three instrument variables at the same HS level for export volume. These instruments—documents required, time taken, and container charges incurred for goods traded across borders—represent trade costs obtained from the World Bank’s Doing Business Project. We find rising exports from the PRC lead to rising AD petitions against the country. Instrumental variable estimates indicate that a 1 percentage point rise in the PRC’s export volume raises the number of AD petitions against the country by about 0.3 percentage point, and the probability of receiving AD petitions by 3.6 %. These estimates are about 10 times larger than those found in ordinary least square regressions. Their quantitative significance underlines why it is important to consider the issue of export endogeneity in the estimation. Moreover, it highlights the failure of the current trade statistics to account for the true value-added of traded goods, and how this has particularly disadvantaged the PRC, given its position as the factory of the world.

Keywords: International trade; antidumping; instrument variable; People’s Republic of China (search for similar items in EconPapers)
JEL-codes: F13 F14 F59 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2014-05-01
New Economics Papers: this item is included in nep-cna, nep-int, nep-sea and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbrei:0131

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