Determinants And Effects Of Antidumping:Mechanism And Evidence From Heterogeneity Perspective

The determinants and effects of antidumping are of great significance to understand how antidumping is initiated and how firms cope with it.Previous research focuses more on macro-level analysis,but less on studies of firms using micro data.Especially for the effects of antidumping,most research emphasizes the aggregate trade from dual-margin level,while few studies explore the antidumping effects on firms' behaviors,which are dependent on the development of Heterogeneous-Firms Trade theory.From heterogeneity perspective of country,industry,across-firm and within-firm,this dissertation tries to elucidate the determinants and micro effects of antidumping,which explains the patterns of antidumping use and the responses of exporters to antidumping,thus providing relevant policy suggestions for China to help enterprises enhance export competence and promote the sustainable development of foreign trade.Based on recent literature about antidumping determinants,this dissertation investigates patterns and determinants of antidumping by comparative analysis between China and India,from macroeconomic,strategic and other factors in consideration of heterogeneity across countries and industries,using data on macroeconomic,product and industry level.And based on multi-product firm model,this dissertation examines how firms adjust their products after antidumping including product scope,product mix and core product switching,using matched data between Chinese Annual Survey of Industrial Firms and China Customs Database from 2000 to 2009.Meanwhile,based on heterogeneous firm model with endogeneity in quality choice,this dissertation delineates how antidumping affects firms' decisions on unit value,product quality and quality adjusted price,using customs data during 2000-2009.Heterogeneous responses across firms and across products within firms have also been tested.At last,this dissertation also considers the indirect effects of antidumping,i.e.how trade policy uncertainty affects firms' foreign market entry and exit.Based on policy uncertainty model,this dissertation estimates heterogeneous effects on different products within firms and different firms within agglomeration areas.Based on theoretical and empirical analysis,the following conclusions can be drawn:Firstly,China's antidumping use shows more systematic pattern,influenced by factors just as theoretically expected.Antidumping filings in China's case are more constrained by economic growth,the antidumping club effect and FTA participation,which may partly explain why China initiated fewer antidumping filings than India.Differences also exist between China and India in the retaliatory and contagion patterns of antidumping filings.India's retaliatory pattern is more similar to that of the developed countries.Antidumping filings in China are also influenced by some different effects across heterogeneous industries and countries,while such differences do not exist in the case of India.Secondly,firms tend to contract their product scope when facing antidumping,and they reduce more products in global markets than those in specific markets.Meanwhile,firms skew their export sales more to the core product in specific markets,while there is no significant effect on product mix in global markets.The negative effect of antidumping on firms' product scope is mainly attributed to core products facing antidumping,while this effect becomes insignificant for firms' peripheral products targeted.Antidumping increases firms' core product switching,but worsens the product's performance.Especially in specific markets,either core or peripheral products facing antidumping,there are significantly negative effects on firms' core product switching.However,core products with stable performance have positive effects on firms'development of core products.Thirdly,firms are more likely to upgrade their export product quality and lower their export price after antidumping.This effect seems more significant in destination markets with shorter distance,and less significant for steel industry compared with other industries.Firms with lower competence,i.e.lower product quality or higher quality adjusted price,are forced to exit foreign market,which increases the average competence of exporters in quality and price.Antidumping induces firms to reallocate their resources to the markets and products with higher competence,which helps to promote competence of the whole firm.And this effect on reallocation becomes weaker in destination markets with longer distance.Finally,Chinese exporters are less likely to enter new foreign markets for targeted products due to increased trade policy uncertainty arising from antidumping,and this effect seems more pronounced in policy active countries.Similar effects are also found for non-targeted but similar products within these firms.Firms are more likely to exit from established foreign markets when their products are subject to antidumping directly,while this effect has flipped over for firms with higher market share.Probability of markets exit for similar products in those firms decreases,which is also caused by firms with higher market share.There exists information spillover across firms located in agglomeration areas for trade policy uncertainty.In the areas with more intense trade policy information,the entry probability of untargeted firms exporting targeted products also becomes lower.