Research On The Impact Of Anti-dumping On The Quality Of Export Products

In human history,“trade protectionism” and “counter-globalization” are always followed by “free trade” and “globalization”.After the global financial crisis in 2008,trade protectionism has regained momentum worldwide,dumping and antidumping have become one of the important topics for current international trade.Since the reform and opening up,China's economy has grown rapidly and its trade volume has soared.China has gradually become one of the world's most important trading nations.As China's trade volume continues to grow,the issue of trade friction between China and its trading partners has become increasingly serious.China has suffered a lot of antidumping cases,while it has also initiated many antidumping filings.China has been faced serious antidumping situation for a long time.According to WTO statistics,China has been suffered the biggest antidumping initiation number since 1995 for 23 consecutive years,accounting for 24.68% of the total global antidumping initiations.The antidumping against China is discriminatory,and the denial of China's market economy status form the European Union,the United States,and Japan will make it easier for them to implement antidumping on Chinese export.In recent Sino-US trade frictions,besides the tariffs for Chinese exports,the United States has also imposed antidumping duties on a range of products from China.At the same time,as China's domestic market become more open to the outside world,a large number of foreign products have entered the Chinese market.The low-price marketing strategy of these products has seriously affected China's import-competitive firms.In order to maintain domestic market's order and protect the legitimate rights and interests of domestic firms,China has also initiate increasingly number of antidumping.According to WTO statistics,since China initiated the first antidumping in 1997,as of2015,China has initiated 434 antidumping cases.China has become an important new user of antidumping in the world.Through the above analysis,in the current “counter-globalization” context,antidumping will be used more frequently,and China will inevitably initiate and suffer more antidumping.As one of the three troikas that drive economic development,exports have always been a strong driving force for China's economic development.However,with the reduction of the demographic dividend and the awareness of resource protection,compared with other low-cost developing countries,the low-price strategy adopted by China's exports has no comparative advantage.Therefore,in order to meet the goal of achieving a well-off(Xiaokang)society in 2020,adapt to the challenges of economic model transformation under the new normal situation,and avoid falling into the middle income trap,improving the quality of China's export products has gradually become the focus of both government and academic fields.At the same time,the publication and implementation of “Made in China 2025” shows China's determination to improve product quality and develop from a big-industrial country to a strong-industrial country.All of these make studying the impact of antidumping on the quality of export products an important topic.This paper studies the impact of antidumping on export product quality,especially on Chinese firm's level.It find that suffering antidumping can bring “unexpected surprise” to Chinese firms and initiating antidumping can give them an opportunity to conduct “curved overtaking”.At the macro level,China is currently at a critical period from the big-industrial country to a strong-industrial country.Chinese economy faces the challenge of transforming from high-speed growth to high-quality development.Understanding how initiating and suffering antidumping can affect Chinese export product quality and its internal mechanism are critical for Chinese development.At the micro level,how domestic firms cope with the bad effects of suffering antidumping and take use of the good effects of initiating antidumping,thus achieving the economic transformation and high-quality development are also issues that need to be considered.This paper uses a combination of theoretical and empirical research to comprehensively evaluate the impact of antidumping on export product quality.This paper is divided into seven chapters.The specific content and main points for each chapter are as follows:Chapter one is the introduction.It mainly includes the research background,significance and content,as well as the basic ideas and methods,the key difficulties,main ideas,innovations and limitations of the research.Chapter two is the literature review.It is divided into three parts: Firstly,the effects of antidumping,including the effects of suffering and initiating antidumping.The related literatures are summarized from the macro and micro perspectives: at the macro level,it can prove the existence of trade destruction,diversion,dampening,deflection,depression effects;at the micro level,it has considered the antidumping effect on firm's productivity,R&D investment,and mark-up.Secondly,the factors affecting the export quality are also analyzed from the macro and micro levels.The conclusion is that the higher the national income level and the technical level,the higher the quality of imported and exported products;the high level of firm's productivity,R&D investment,and wage can also promote the quality at the micro level.Thirdly,the impact of trade policy on product quality,including the impact of tariff and non-tariff policies on product quality.The impact of tariff policy can demonstrate that trade liberalization can improve the product quality for both importing and exporting countries.The non-tariff policy is mainly focuses on the quantitative non-tariff policies,which can prove that the export product quality can also increase after quantitative non-tariff policies.Chapter three is an overview of antidumping and export product quality.Combing with tables and graphs,it is divided into two parts.The first one is the introduction of antidumping,which includes the status and characteristics of antidumping,such as the status of dumping and antidumping,the procedure of dumping and antidumping,and the total amount,national,regional and industry distribution of antidumping.The second part is the introduction of export product quality,which include the calculation method and the status and characteristics of quality.It also analyzed the time changes,average level,industry characteristics,and firm characteristic of export quality.Chapter four is the analysis of the impact of global antidumping on countryproduct level export quality.Using the 1988-2015 trade data and global antidumping data,this paper use the difference in difference method to study the impact of global antidumping on country-product level export quality.The following conclusions were drawn: Firstly,after suffering/initiating antidumping,the export product quality will increase.Secondly,when the importer is a developed country,it will enhance the positive effect of antidumping on the export product quality.Thirdly,the characteristics of exporter has little effect on the positive effect of antidumping on the export product quality;specifically,regardless of whether the exporters are developed or developing countries,the quality of their export products will rise after antidumping.Fourthly,to test the changes of Chinese export product quality after suffering from or initiating antidumping,this paper finds that the export quality of Chinese exports will increase after antidumping.Chapter five is the analysis of the impact of suffering antidumping on firm level export quality of China.Firstly,through theoretical analysis,this paper studies the impact of antidumping on Chinese firm level export product quality,and draws two theoretical hypotheses.Then through the Chinese custom data at 2000-2013,using the difference in difference method,this paper empirically test the theoretical hypothesis,and the following three conclusions were drawn: Firstly,the export product quality of Chinese firms increase after antidumping,and this conclusion is still stable after several robustness checks.Secondly,the analysis of the mechanism shows that for export firms with low productivity and low quality of export products before antidumping,their export quality need a bigger improvement after antidumping.So that for this kind of firms,antidumping has a greater role in promoting the quality of their export products.Also,for products with higher substitutional elasticity,consumers are more sensitive to price changes,so their export quality also improve bigger after antidumping.Thirdly,further differential analysis also shows that middle and western firms compared with eastern firms,single-product firms compared with multi-product firms,single-export destination firms compared with multi-export destination firms,state owned firms compared with foreign owned firms,their product quality increase more after antidumping.Chapter six is the analysis of the impact of initiating antidumping on firm level export quality of China.Firstly,after adding the antidumping variables,a heterogeneous firm model is constructed to obtain three hypotheses about the impact of initiating antidumping on firm level export quality.Then,using the 2000-2013 Chinese firm level data,the empirical test is carried out and the main conclusions are as follows: Firstly,the three hypotheses of the theoretical model are proved.After antidumping,the export quality of Chinese firms has risen,and the higher the improvement of the domestic market share and the higher the firm productivity,the greater of the quality increase.Moreover,various robustness test results confirm the basic conclusions of this chapter.Secondly,through differential analysis for subsamples,it is found that middle and western firms compared with eastern firms,singleproduct firms compared with multi-product firms,single-export destination firms compared with multi-export destination firms,state owned firms compared with foreign owned firms,export destination as developed country compared with developing country,their quality increase is rather smaller.Most of these firms are high-cost with low productivity,which can further validate the theoretical hypothesis of this chapter.Thirdly,by adding cross-terms of different variables to conduct heterogeneity analysis,this paper finds that the bigger the distance between the export destination country and China,the smaller the geographical concentration of export firms,the closer the quality of export products is to the quality frontier,and the greater the export competitiveness of export firms,the greater the role of antidumping in promoting product quality.Chapter seven is about the conclusion,policy recommendation and the possible future research directions.First of all,it summarizes the main conclusions of this paper,that is,whether it is from a global perspective or from the perspective of China's suffering or initiating antidumping,antidumping will improve the export product quality;then,give policy recommendations for China's response of antidumping from the government level and the firm level;finally,talk some possible research directions that can be conducted in the future.