An Empirical Study On The Trade Effect Of China's Anti-dumping Policy

The anti-dumping is permitted by WTO to safeguard fair competition and protect the safety of domestic industries, so it is being adopted by more and more countries. China has become a significant user among developing countries to employ anti-dumping measures to protect domestic industries.The thesis first studies 146 anti-dumping filing cases from 1997 to 2006 based on 6 digital tariff codes. Import values by counties of involved products are collected for seven consecutive years, including the year of initiation, three years prior to the initiation, and three years following the initiation for each case. The influences of anti-dumping duties, trade volume and share of named countries are estimated through dynamic panel data. The trade effect is studied from the involved product level.With the panel data of China's anti-dumping cases from 2001 to 2009, the thesis then constructs dynamic panel data models based on national level. It uses gravity model to empirically investigate the influences of anti-dumping measures and trade liberalization on China's import trade with the first-differenced GMM estimator and system-GMM estimator. Empirical test shows that China's anti-dumping initiations have reputation effect in the whole imports from the named countries and regions but anti-dumping measures such as final affirmative decisions do not have trade destruction effects in import value terms. The trade liberalization of China is positively correlated with import value.Finally, related suggestions are proposed on how to guarantee the legal rights of domestic enterprises and appropriately protect China from foreign countries' anti-dumping so as to maintain a fair market environment.