Anti-Dumping Duty Circumvention through Trade Re-Routing: Evidence from Chinese Exporters

36 Pages Posted: 18 Aug 2016

See all articles by Xuepeng Liu

Xuepeng Liu

Kennesaw State University - Department of Economics and Finance

Huimin Shi

Renmin University of China - School of Economics

Date Written: August 14, 2016

Abstract

We study the evasion of U.S. anti-dumping duties by Chinese exporters through trade rerouting via third countries or regions. Using detailed monthly trade data reported by China and the U.S. Customs during the period of 2002–2006, we find that U.S. anti-dumping actions against China lead to a stronger positive correlation between U.S. imports from third countries and Chinese exports to the same third countries. Such an effect is more pronounced for the products subject to anti-dumping duties (treatment groups) than similar products not subject to these duties (control groups), which is consistent with trade re-routing. We show further that the positive correlation increases with some product or third-country characteristics that are conducive to duty evasion.

Keywords: Antidumping, Circumvention,U.S. China Trade, Re-Routing

JEL Classification: F1, H2, L2

Suggested Citation

Liu, Xuepeng and Shi, Huimin, Anti-Dumping Duty Circumvention through Trade Re-Routing: Evidence from Chinese Exporters (August 14, 2016). Available at SSRN: https://ssrn.com/abstract=2823249 or http://dx.doi.org/10.2139/ssrn.2823249

Xuepeng Liu

Kennesaw State University - Department of Economics and Finance ( email )

United States

HOME PAGE: http://ksuweb.kennesaw.edu/~xliu6/

Huimin Shi (Contact Author)

Renmin University of China - School of Economics ( email )

No. 59, Zhongguancun Street
Beijing, Beijing 100080
China

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