Study On The Trade Effects Of Antidumping

With the rapid development of China’s domestic economy and the accelerating process of economic globalization, trade relationship between China and the countries and regions of the world is becoming more frequent, especially after joined WTO in2001, the foreign trade of China increased rapidly. At the same time, our country also suffered from trade barriers and trade frictions all over the world. As one of the trade protection measures which WTO allows, antidumping favored by many countries. Since the establishment of the WTO in1995, China has suffered a total of854anti-dumping cases, becoming the most populous nation all over the world.In recent years, in addition to Europe and the United States and other developed countries, the developing countries also constantly lift the anti-dumping proceedings towards China, especially in India, which has more cases than that of Europe and the United States, becoming the main force of the anti-dumping towards China. The anti-dumping proceedings towards our country serious damage to domestic economy, such as restricting China’s exports to India, hindering the normal development of export enterprises, impacting the domestic market. Therefore, trade friction has become a huge obstacle to the development of economy in China. Recently, there have been some literature on studying the trade effect of anti-dumping, but basically for the European Union and the United States and other developed countries, the study on developing countries is very little. In the condition of India has become the most important country in anti-dumping towards China, studying anti-dumping characteristics and trade effect on-dumping measures can provide a theoretical basis and policy reference to the healthy development of economy and foreign trade,which has very important practical significance.This paper firstly review the study on anti-dumping trade effect, summarize the four types of anti-dumping trade effect, then create a dynamic game model to analyze trade destruction effect and trade diversion effect theoretically. Secondly, we divide the products concerned into six categories according to their HS code, it is:textile, chemical, base metals and their products, mechanical and electrical industries, plastics and rubber, other industries. Learned from study of Sheng (2007), we calculated RCA value of the product concerned by industry and found that India tend to initiate anti-dumping proceedings towards the products which have comparative advantage. On this basis, we then take an empirical test on trade investigation effect, trade restriction effect and trade diversion, The results indicate that there are trade restriction effect of anti-dumping in textiles industry during the investigation period, and trade diversion effect of anti-dumping in textiles, chemical industry, base metal and metal products industry during the final decision stage. There are trade diversion effect of anti-dumping in textiles industry, chemical industry, plastics and rubber during the investigation period, in addition to mechanical and electrical industries, other industries have significant trade diversion effect.Moreover, textile and chemical industry of revealed comparative advantage has positive effect on import interaction with the anti-dumping, indicating that these two industries has strong revealed comparative advantages can weaken the negative influence of anti-dumping on import. We can conclude that products with higher RCA will continue to increase import. Base metals and products industry of revealed comparative advantage has negative effect on import interaction with the anti-dumping, probably because it’s weak comparative advantage. I’inally, this paper puts forward the policy Suggestions on how to improve our country manufacturing industry international competitiveness according to the results of the empirical regression.