U.s. Anti-dumping Trade Effects Of The International Division Of Labor

In view of the trade effect of US anti-dumping (AD) to China under the international division of labor, this paper has carried on the economic analysis and the experience studies to this problem through various methodologies such as description statistics, comparative analysis, empirical study methods and so on. Not only has it analyzed the conduction way of the trade effect of AD under the different division of labor, but it has thoroughly studied function of the trade effect by US anti-dumping to China under the different division of labor.First, according to the development history of international trade and international division of labor theory, this paper divides the international division of labor into two forms:inter-industry division of labor and intra-industry division of labor. According to the theory basis and the characteristic of these two kinds of division of labor, this paper has thoroughly analyzed conduction way of the trade investigation effect, the trade restriction effect and the trade diversion effect of AD under different division of labor. Based on the differences in comparative advantage and cost among countries, the above three kinds of trade effect separately conduct through the cash flow risk, the terms of trade worsening and the substitution country's threat under Inter-industry division of labor. While under intra-industry division of labor, the above three kinds of trade effect separately conduct through the rise of production cost, negative price flexibility and the threat of substitution product because it is on the basis of differentiated products and economies of scale.Second, this paper has separately calculated the revealed comparative advantage index (RCA) and the intra-industry trade index (GL) of the involved US to China AD products. The result shows that most involved US to China AD products have very high RCA but very low GL, which indicates that the US intends to initiate AD investigation to the product under inter-industry division of labor. In addition, the result also shows that one year after the AD initiation, the RCA index of the involved products will universally drop while the GL index universally rise, indicating that AD action has disturbed the present division of labor situation. Third, this paper has studied the trade effect of US anti-dumping to China under inter-industry division of labor and intra-industry division of labor by using econometric models. The findings indicates that AD investigation, AD final verdict and intra-industry division of labor can reduce the US'import from China, while inter-industry division of labor will promote the US'import from China. Through the empirical study of interaction term between division of labor and AD, this paper shows that inter-industry division of labor has played the decisive role in influencing trade flow, surpassing both AD investigation and AD taxation. In other words, AD trade effect will be weakened under this division of labor. However, intra-industry division of labor and AD trade effect is extremely non-correlated, thus AD trade effect can play the role independently without the influence of division of labor.Finally, this paper summarized the research conclusions and has given some policy suggestions. In view of the occurrence of AD, inter-industry division of labor is more easily to arouse AD investigation compared to intra-industry division of labor. However, inter-industry division of labor can absorb AD's influence to trade faster than intra-industry division of labor, meaning that it can protect the industrial security and the economic stability. Therefore, this paper believes that China's upgrading of industries should not be excessively quick. In addition, the government and relevant departments should make great effort in guiding exporting enterprises to circumvent AD and educating them the right way to respond to AD charges, and also participate in the negotiations of the US-Sino trade cooperation positively.