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Political Connections and Antidumping Investigations: Evidence from China

Hongyong Zhang ()

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: Do political connections affect antidumping (AD) investigations? To address this question, we use antidumping filings data combined with micro data on Chinese manufacturing firms for the period 1998-2007. The political connections of a firm are defined by whether it has state-owned capital or whether it is under the administration of central or provincial government. Estimating a probit model of AD filings at the firm level, we find that strong political connections significantly increase the likelihood of AD petitions and affirmative final dumping decisions. State-owned enterprises, firms affiliated with the central or provincial government, low productivity firms, and large firms tend to file AD investigations in China. The industry-level estimation results also confirm that industries with a greater presence of state-owned enterprises are likely to receive trade protection from the Chinese government, controlling for import penetration, year, and industry fixed effects.

Pages: 15 pages
Date: 2017-06
New Economics Papers: this item is included in nep-bec, nep-cna, nep-cse, nep-int, nep-pol and nep-tra
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Journal Article: Political connections and antidumping investigations: Evidence from China (2018) Downloads
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