Inside Global Issues
This paper has been published in Applied Economics 47(26) 2015
Working Paper No.201506
May 19th,2015
Chinese Firm and Industry Reactions
to Antidumping Initiations and Measures
Chunding Li & John Whalley
China has been the subject of large numbers of both antidumping initiations and measures. This paper explores the reactions of Chinese firms and industries to these actions by using dynamic system GMM estimator and industrial panel data on all Chinese firms in the industry, foreign firms operating within China and state owned enterprises (SOE) for aggregated firms group between 1997 and 2007. We find that antidumping actions by developed and developing countries negatively impact industrial profits and employee and firm numbers and also exports, but improve labor productivity. We also find that different kinds of firms show different responses. All firms together in an industry react to antidumping the most, and foreign and SOE firms show a much smaller response. Further, antidumping effects from different countries are different. Developed countries’ antidumping actions have more negative impact than developing countries’ actions; the effects of US actions are different from EU’s.
Keywords: Antidumping; Industry Reactions; China; Industry Level Panel
JEL Classification: F14; C33; F42