The Impact of Granting Market Economy Status to China on Antidumping Duties and Imports: The Case of Korea

Soonchan Park ()
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Soonchan Park: Kongju National University

East Asian Economic Review, 2006, vol. 10, issue 2, 71-88

Abstract: The Korean government has officially recognized China as a full market economy. This paper investigates the impact of grantingThe Korean government has officially recognized China as a full market economy. This paper investigates the impact of granting market economy status to China on antidumping (AD) duties and imports. With regard to non-market economies (like China), it is presumed that prices and costs are influenced by state interference and, therefore, authorities use prices and costs from a third party economy to construct normal values. This, however, leads to higher dumping margins. This paper examines the use of Non-Market Economy (NME) on dumping margins and statistical analysis finds that NME, in fact, raises margins by 18.7∼27.3%. Furthermore, the imposition of AD duties significantly restrains trade; for example, a 10% AD duty causes imports to fall by about 1.5~3.4%.

Keywords: Antidumping; Market Economy Status; Dumping Margin; Trade Effects (search for similar items in EconPapers)
JEL-codes: F13 (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:ris:eaerev:0162

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